Sedmoi Kontinent
Encyclopedia
Sedmoi Kontinent , is a major grocery retail chain operating 140 stores in Russia
and one in Belarus
. It is headquartered in Moscow
.
Founded in 1994, Sedmoi Kontinent was the first new Russian food retailer since the dissolution of the Soviet Union
. In the early 2000s, the company launched a major expansion program and saw its revenue increasing from $105 million in 2000 to $1.27 billion in 2007.
and Alexander Zanadvorov.
In July 2001, Sedmoi Kontinent announced its results for the year 2000: revenue grew 50%, standing at $105 million. The company, which by then had 15 stores, all located in Moscow, said that it would launch a major expansion with the aim of increasing the number of stores to 35 before the year end. The company was also looking for a strategic investor, but had been unsuccessful so far. In August 2002, the company said it was looking for a foreign partner to stay competetitive in the market.
By 2002, the company was among the 4 largest retail chains in Moscow. The company's revenue that year was $300.5 million. In 2003, its revenue grew to $445 million. According to a Mercer Human Resource Consulting study from 2002, Sedmoi Kontinent is a medium-priced store, while Ramstore was the cheapest supermarket and Kalinka Stockmann was expensive and targeted for the high-end segment.
In November 2004, Sedmoi Kontinent became the first Russian retail food company to offer stocks to the public by offering 8,415,573 ordinary shares with a face value of 0.5 rubles on the Russian Trading System
(RTS) stock exchange. The company said it sold 8.42 million shares, corresponding to a 13% share in the company, at a price of 275 rubles ($9.59) per share, raising a total of $80.7 million, and said that it was planning to use the money to finance new stores. Sedmoi Kontinent was the eight Russian company to make initial public offering since the collapse of the Soviet Union.
In 2005, Sedmoi Kontinent expanded its business to the Kaliningrad Region by acquiring the Kaliningrad-based Altyn chain. Via the purchase, Sedmoi Kontinent gained 29,500 square meters of trading space and 12 stores in the region.
By April 2008, Sedmoi Kontinent had 133 stores, most of them in the Moscow Region. The company's revenue in 2007 was $1.27 billion with a net profit of $99.2 million.
In February 2009, the French retail company Carrefour
made an offer for 74.8% stake in Sedmoi Kontinent. Carrefour estimated the market value of Sedmoi Kontinent as $1.25 billion.
In June 2009, it was reported that the company had defaulted on bonds worth 1.9 billion rubles ($61 million), but it managed to get 7 billion rubles of its debts restructured in November 2009.
Sedmoi Kontinent operates the following types of stores:
As of July 2010, the company had 121 supermarkets and 4 hypermarkets in Moscow
and the Moscow Oblast
, 10 supermarkets in Kaliningrad Oblast
and one hypermarket in each of the following locations: Ryazan
, Chelyabinsk
, Minsk
(Belarus), Perm
, Belgorod
and Yaroslavl
.
Russia
Russia or , officially known as both Russia and the Russian Federation , is a country in northern Eurasia. It is a federal semi-presidential republic, comprising 83 federal subjects...
and one in Belarus
Belarus
Belarus , officially the Republic of Belarus, is a landlocked country in Eastern Europe, bordered clockwise by Russia to the northeast, Ukraine to the south, Poland to the west, and Lithuania and Latvia to the northwest. Its capital is Minsk; other major cities include Brest, Grodno , Gomel ,...
. It is headquartered in Moscow
Moscow
Moscow is the capital, the most populous city, and the most populous federal subject of Russia. The city is a major political, economic, cultural, scientific, religious, financial, educational, and transportation centre of Russia and the continent...
.
Founded in 1994, Sedmoi Kontinent was the first new Russian food retailer since the dissolution of the Soviet Union
Dissolution of the Soviet Union
The dissolution of the Soviet Union was the disintegration of the federal political structures and central government of the Union of Soviet Socialist Republics , resulting in the independence of all fifteen republics of the Soviet Union between March 11, 1990 and December 25, 1991...
. In the early 2000s, the company launched a major expansion program and saw its revenue increasing from $105 million in 2000 to $1.27 billion in 2007.
History
The company was founded in 1994 by Vladimir GruzdevVladimir Gruzdev
Vladimir Sergeyevich Gruzdev is a Russian politician, the governor of Tula Oblast., businessman and explorer.Vladimir Gruzdev was born in 1967 in Bolshevo, Moscow oblast, to a military officer and a teacher...
and Alexander Zanadvorov.
In July 2001, Sedmoi Kontinent announced its results for the year 2000: revenue grew 50%, standing at $105 million. The company, which by then had 15 stores, all located in Moscow, said that it would launch a major expansion with the aim of increasing the number of stores to 35 before the year end. The company was also looking for a strategic investor, but had been unsuccessful so far. In August 2002, the company said it was looking for a foreign partner to stay competetitive in the market.
By 2002, the company was among the 4 largest retail chains in Moscow. The company's revenue that year was $300.5 million. In 2003, its revenue grew to $445 million. According to a Mercer Human Resource Consulting study from 2002, Sedmoi Kontinent is a medium-priced store, while Ramstore was the cheapest supermarket and Kalinka Stockmann was expensive and targeted for the high-end segment.
In November 2004, Sedmoi Kontinent became the first Russian retail food company to offer stocks to the public by offering 8,415,573 ordinary shares with a face value of 0.5 rubles on the Russian Trading System
Russian Trading System
The Russian Trading System is a stock market established in 1995 in Moscow, consolidating various regional trading floors into one exchange. Originally RTS was modelled on NASDAQ's trading and settlement software; in 1998 the exchange went on line with its own in-house system...
(RTS) stock exchange. The company said it sold 8.42 million shares, corresponding to a 13% share in the company, at a price of 275 rubles ($9.59) per share, raising a total of $80.7 million, and said that it was planning to use the money to finance new stores. Sedmoi Kontinent was the eight Russian company to make initial public offering since the collapse of the Soviet Union.
In 2005, Sedmoi Kontinent expanded its business to the Kaliningrad Region by acquiring the Kaliningrad-based Altyn chain. Via the purchase, Sedmoi Kontinent gained 29,500 square meters of trading space and 12 stores in the region.
By April 2008, Sedmoi Kontinent had 133 stores, most of them in the Moscow Region. The company's revenue in 2007 was $1.27 billion with a net profit of $99.2 million.
In February 2009, the French retail company Carrefour
Carrefour
Carrefour S.A. is an international hypermarket chain headquartered in Levallois-Perret, France. It is one of the largest hypermarket chains in the world...
made an offer for 74.8% stake in Sedmoi Kontinent. Carrefour estimated the market value of Sedmoi Kontinent as $1.25 billion.
In June 2009, it was reported that the company had defaulted on bonds worth 1.9 billion rubles ($61 million), but it managed to get 7 billion rubles of its debts restructured in November 2009.
Stores
Sedmoi Kontinent was one the first Russian multi-format retail chains. Its two major formats are supermarkets and hypermarkets.Sedmoi Kontinent operates the following types of stores:
- Sed’moy kontinent - Pyat’ Zvezd (The Seventh Continent - Five Stars)
- Sed’moy kontinent - Universam (The Seventh Continent - Universam)
- Sed'moy kontinent-Ryadom s domom (The Seventh Continent - Next Door)
- Sed’moy kontinent - Gastronomiya (The Seventh Continent - Gastronomy)
- NASH Gypermarket (OUR Hypermarket)
- Prostor.
As of July 2010, the company had 121 supermarkets and 4 hypermarkets in Moscow
Moscow
Moscow is the capital, the most populous city, and the most populous federal subject of Russia. The city is a major political, economic, cultural, scientific, religious, financial, educational, and transportation centre of Russia and the continent...
and the Moscow Oblast
Moscow Oblast
Moscow Oblast , or Podmoskovye , is a federal subject of Russia . Its area, at , is relatively small compared to other federal subjects, but it is one of the most densely populated regions in the country and, with the 2010 population of 7,092,941, is the second most populous federal subject...
, 10 supermarkets in Kaliningrad Oblast
Kaliningrad Oblast
Kaliningrad Oblast is a federal subject of Russia situated on the Baltic coast. It has a population of The oblast forms the westernmost part of the Russian Federation, but it has no land connection to the rest of Russia. Since its creation it has been an exclave of the Russian SFSR and then the...
and one hypermarket in each of the following locations: Ryazan
Ryazan
Ryazan is a city and the administrative center of Ryazan Oblast, Russia. It is located on the Oka River southeast of Moscow. Population: The strategic bomber base Dyagilevo is just west of the city, and the air base of Alexandrovo is to the southeast as is the Ryazan Turlatovo Airport...
, Chelyabinsk
Chelyabinsk
Chelyabinsk is a city and the administrative center of Chelyabinsk Oblast, Russia, located in the northwestern side of the oblast, south of Yekaterinburg, just to the east of the Ural Mountains, on the Miass River. Population: -History:...
, Minsk
Minsk
- Ecological situation :The ecological situation is monitored by Republican Center of Radioactive and Environmental Control .During 2003–2008 the overall weight of contaminants increased from 186,000 to 247,400 tons. The change of gas as industrial fuel to mazut for financial reasons has worsened...
(Belarus), Perm
Perm
Perm is a city and the administrative center of Perm Krai, Russia, located on the banks of the Kama River, in the European part of Russia near the Ural Mountains. From 1940 to 1957 it was named Molotov ....
, Belgorod
Belgorod
-Twin towns/sister cities:Belgorod is twinned with: Wakefield, England, United Kingdom Herne, North Rhine-Westphalia, Germany Palembang, South Sumatra, Indonesia Opole, Poland Vyshhorod, Ukraine Kharkiv, Ukraine-External links:...
and Yaroslavl
Yaroslavl
Yaroslavl is a city and the administrative center of Yaroslavl Oblast, Russia, located northeast of Moscow. The historical part of the city, a World Heritage Site, is located at the confluence of the Volga and the Kotorosl Rivers. It is one of the Golden Ring cities, a group of historic cities...
.