About the company

The DIXY Group of Companies is one of Russia's leading retailers of foods and everyday products. The company specializes in developing neighborhood store supermarkets in Moscow, St. Petersburg and three federal districts of Russia: Central, Northwest and Urals and also in Kaliningrad region, which together account for more than half of the retail market for foods and everyday products in the Russian Federation.

In May 2007, the Company raised $360 million in its IPO on RTS and MICEX. Company shares are included in two RTS indexes: the Consumer & Retail Index (RTScr) and the RTS-2 Second-Tier Stock Index (RTS2), as well as in the MICEX Consumer Goods and Services Index (MICEX CGS)

The Mercury Group of Companies, a diversified holding company, owns a controlling stake in OJSC DIXY Group. In 2010, Mercury Group's consolidated turnover exceeded $15 billion. In addition to the DIXY Group, its core assets are:

• Megapolis Group of Companies, Russia's largest distributor of FMCG products and one of the world's largest distributors of tobacco products;
• SovInterAutoService, one of the largest trucking companies in the CIS backed by more than 30 years of truck transport within Russia in Western and Eastern Europe and Asia;
• The Mercury Development group of companies, known for projects such as construction of class A+ multipurpose Mercury City Tower at Moscow City development and M.V.Frunze Resort in Sochi, and others;
• OAO Gorevsky GOK, Russia's largest polymetal (lead, zinc) producer and smelter;
• Turboholod Manufacturing Facility (a developer of turboexpanders for the oil and gas industry);
• The Degtyarev Plant (a manufacturer of civilian and military equipment).

DIXY's first store opened in Moscow in March 1999; at the same time MEGAMART retail stores began operating in Yekaterinburg. The DIXY chain has been expanding in St. Petersburg since 2000. The company initially focused on serving the mass consumer segment in Russia's most popular soft discount format.

DIXY is growing rapidly and expanding its geographic presence, opening new stores in various regions of Russia. The company is successfully developing different store formats within the modern supermarket format. This enables it to reach a wider audience with the most diverse consumer preferences and incomes, which ensures rapid sales growth.

Whenever we enter any new region or any new city, we bring our corporate culture, our attitude toward business, and our values - honesty, decency, and openness. DIXY makes customer loyalty a priority, striving to continuously offer low prices, a wide assortment, as well as a fast and polite service.

Assortment and Quality

In each region, the assortment and quantity of goods for each store is customized to consumer demand. An emphasis on collaboration with local manufacturers and vendors ensures that the chain is supplied with fresh local goods promptly and efficiently.

Logistics and Distribution

The company has developed an efficient logistics and distribution system - eight distribution centers with a total area greater than 127,000 square meters supply DIXY retail stores in the key regions.
The company also owns a fleet of trucks, which optimizes transportation costs and ensures prompt deliveries to stores.

Technologies

The company is a heavy user of cutting edge information technologies, including the Aldata GOLD supply chain management system, which is also used by Сarrefour, Tesco, Ahold and Casino and helps improve the efficiency of all business processes, lower costs, and increase inventory turnover.

Marketing

Concern for the customer is the core value of the DIXY retail chain and the foundation of its strategy. The company strives to know everything about its clients’ tastes and preferences so that it can best meet their expectations and most closely reflect their lifestyles.

In any aspect - from attractive prices to stores in the most convenient locations, from a well-balanced assortment to a high level of service - the company strives to align with consumers’ ideas about modern retail. Weekly promotions are aimed at giving customers even better bargains, and they have enabled the company to achieve the industry’s highest target audience loyalty.

Private Label Brands

For several years DIXY has been actively expanding the production of private label brands, offering customers high-quality goods at the best prices. They include well-known food and non-food brands such as Polnaya Krynka (Full Jug), Selo Kuvshinkino (Kuvshinkino Farms), Odarka (dairy products), Lubimye Traditsii (Precious Traditions), Tozhinki (grocery products), Ovocshnaya Semeika (The Vegetable Family) (frozen and canned vegetables), Fruktovy Parad (Fruit Parade) (juices and nectars), Figaro and Vertex (non-food items), and many more.

DIXY’s private label brands are produced by Russia’s leading manufacturers using unique patented formulas that meet all manufacturing and quality requirements - products undergo thorough quality control, both at all stages of manufacturing and at independent accredited laboratories - and are represented in several segments that meet the needs of target groups of customers: Good Deal; High Quality Products for the Whole Family; and Organic Life.

Strategy

DIXY has considerable experience in the Russian market and an advanced business process that enables it to successfully execute a large-scale development program. The company continuously strives to optimize operating costs, increase its overall operating efficiency and ensure business sustainability through diversification of vendors and the assortment.
DIXY is well positioned for further growth and has set a long-term goal of becoming the industry leader in the neighborhood store format in operating efficiency, operating processes, customer and employee loyalty and, as a consequence, sales.