Russian Retailer Mere Displacing Competitors in Hungary’s Retail Market
In mid-July, a long-standing store of Hungary’s second-largest retail chain, SPAR, will permanently close its doors in a major rural city. Rumours are circulating that the Russian chain Mere might take over the location. However, the city of 70,000 will not be left without a SPAR presence.
Last week, the business publication World Economy reported that Hungary’s first Mere store might open in Budapest’s IV district, possibly in a former SPAR location. Now, a similar scenario is unfolding in Szolnok, the county seat of Jász-Nagykun-Szolnok County.
The news of the SPAR store closure in Szolnok first appeared on social media and was later confirmed by local media, including Szol24. Despite the closure of the central city store in the Pelikán Shopping Center, Szolnok will still have other SPAR outlets nearby and an Interspar as well, World Economy writes. SPAR Hungary operates 641 units nationwide with over 17,000 employees, making it a significant employer. In 2023, SPAR invested in new store openings and renovations.
Világgazdaság contacted SPAR Hungary for details on the closure. SPAR’s Communications Director, Márk Maczelka, explained that annual performance reviews sometimes lead to store closures for cost rationalization. This year’s review indicated that the SPAR supermarket at 15 Ady Endre Street in Szolnok could not be operated profitably, leading to its closure on 14 July 2024. Maczelka emphasized appreciation for the staff’s efforts and mentioned that most affected employees were offered positions in other stores. Those unable to accept new roles would receive benefits according to their tenure and the collective agreement.
Rumours suggest that the Russian Mere might open a store in the soon-to-be-vacant location in the Pelikán Shopping Center. While the centre’s management neither confirmed nor denied this, they stated that discussions with several interested parties are ongoing. It is confirmed that a new grocery store will eventually occupy the ground floor, but the specific chain remains uncertain. SPAR Hungary did not comment on potential new store openings by other chains.
According to Szol24, in Budapest, the Russian supermarket chain is expanding on the site of the SPAR stores that are closing, and its main attraction is its extremely low price. In addition to being cheap, the Russian supermarket is also special because they don’t put anything on the shelves but they simply offer a selection of pallets and boxes for the customer.
