Debut on the Moskva

It was 20 November 2003 when Obi launched two DIY stores in Moscow, thereby completing the move into the growth market of the Russian Federation that it had been gearing up to for two years. The retail environment was the deciding factor in the choice of location: both stores are situated in the immediate vicinity of the Ikea furnishing stores at Chimki in the north-west of Moscow and in the mega shopping mall in the south-west of Moscow, which also includes a multiplex cinema.he range of products available in Moscow includes around 50 000 items.The two new DIY superstores offer Muscovites an assortment of 50 000 different items that focus on themes of building, home living and gardening. The outdoor areas are however considerably smaller than in Germany because of the harsher continental climate, though the heated areas are larger in compensation. According to the company, nothing in Moscow at present is comparable in size to the stores’ “Gartenparadies” garden departments.The main emphasis in the product offer is on technical goods, home improvement and garden products. Broad sections of the range in both Moscow stores are produced by Russian sources. Around 60 of the total of 400 suppliers are Russian companies, which are hoping for an economic revival through Obi’s market entry. There is a strong conviction at head office that the opening up of the Russian market will provide a positive impetus in Germany as well. The expansion of sales potential is helping the manufacturing industry to counteract the stagnation in the German market.“Home improvement” is one of the store’s keynote elements.The stores are open from 10 in the morning till ten in the evening seven days a week. Obi regards itself as a significant employer in the Moscow region with approximately 180 employees per store. There are plans for further store openings in Moscow and St Petersburg, with ten locations being set as a medium-term target. Sergio Giroldi, chairman of Obi’s board, believes that the international transfer of knowledge in the field of marketing and product assortment policy will have a positive effect on the Moscow business world in its entirety.Obi´s "Gartenparadies" is designed to open up a new world of shopping to Muscovites.Like all branches of Obi, the two stores in Moscow will operate under a franchising system. A joint venture company has been set up with the group’s Russian partner DIY-Project to this end.Obi is currently strengthening its position most…