Domovoy sets a three-year programme for smaller store formats

Smaller formats and a narrower assortment

Domovoy’s operator, Start Management Company, has approved a three-year development programme. The retailer plans a comprehensive overhaul in 2025, followed by stronger operating momentum in 2026 and improved capitalization and financial results in 2027. Its proposed replacement for the hypermarket format comprises:

• Supermarkets of up to 1,500 square metres.
• Convenience stores of up to 400–500 square metres.

The estimated average refurbishment cost is 11 million rubles per store, excluding value-added tax. Domovoy plans to emphasize complete interior solutions and reduce its assortment from 60,000 items to 8,000–18,000, depending on format. It intends to expand private labels; their share at the chain was 10% in 2024. Investment and remodelling schedules remain dependent on each location’s conditions.

Earlier customer and brand initiatives

The programme follows earlier changes to customer marketing. In May 2024, Domovoy’s priorities included promoting private labels and product brands introduced during the preceding two years. Television and online advertising formed part of its customer-acquisition activity. Its loyalty programme had been updated in 2023.

For 2024, the retailer planned additional discounts and daily featured products to attract prospective customers and encourage visits from online channels to physical shops. Its network-development priorities included greater recognition in Moscow, openings in a mini-store format, promotion through marketplaces and entry onto additional platforms.

Furniture showroom cooperation

A furniture partnership was already being tested before the July programme. By April 3, 2025, First Furniture Factory had opened a branded showroom inside Domovoy’s hypermarket at 89 Bukharestskaya Street in St. Petersburg. It occupied one section of a store with a total retail area of 5,600 square metres. The showroom offered modular kitchen furniture and wardrobes, including sliding-door models.

The manufacturer selected Domovoy because it considered the retailer’s customers similar to its own target audience. Domovoy viewed the cooperation as a way to extend customer service. The partner was considering additional locations after a test period ending in summer.