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28 September 2020

In September 2020, during an open auction, the Company, which is part of the Kievskaya Ploshchad Group of Companies, acquired a wholesale food complex operating under the Four Seasons brand in Domodedovo, Moscow region. On the 32.79-hectare site, with its commercial, warehouse and office space covering a total area of 60,000 square metres, there are plans to create an agrocluster based on the successful FOOD CITY concept. In the future, the project is expected to be rolled out in 24 other regions of Russia.

An important task for Kievskaya Ploshchad in managing the project to develop an effective trade complex will be to improve the Russian food infrastructure and create a modern business ecosystem.

The innovative nature of the project will ensure the development and creation of a modern digital platform using an electronic exchange, to which both Russian and foreign suppliers, buyers and service operators can directly connect. Manufacturers will be able to sell products to the end user without intermediaries.

The digital platform will allow electronic bidding and safe wholesale and retail transactions, working with proven suppliers and buyers, using built-in banking products and services. In addition, it will provide a quick search for products of the required quality, help people find their nearest points of purchase, and form the shortest routes for the delivery of goods.

The service will provide users with access to a much larger number of customers than in offline trade, including public procurement. Retail chains, government agencies, schools, kindergartens, cafes and restaurants will be able to reduce end consumer prices and complete guaranteed deals.

The Kievskaya Ploshchad food retail digital transformation project will be implemented jointly with Sberbank, which has unique competencies in the IT industry. Transferring payments to non-cash transactions and reducing the turnover of cash will not only be more convenient for customers and suppliers, but also create conditions for maximum transparency of transactions, including for the tax authorities.

A service jointly developed by Kievskaya Ploshchad, Sberbank and the Federal Tax Service of Russia will be introduced at new regional sites where the FOOD CITY concept will be replicated. It provides information on the availability of credit, lets you pay debt online and remove suspensions within 24 hours.

Initially, the FOOD CITY concept is being introduced in million-plus cities such as Kazan, Novosibirsk, Rostov-on-Don and Samara. In total, there are plans to roll out the format in 24 regions of Russia.

God Nisanov, Chairman of the Board of Directors of the Kievskaya Ploshchad Group of Companies:

"The creation of a large-scale project that will strengthen Russia's food potential is an important strategic task for Kievskaya Ploshchad. We are proud that the FOOD CITY project we have created has become significant and in demand, and today provides a significant part of the needs of the Moscow region in fresh, natural products directly from suppliers. Kievskaya Ploshchad plans to develop the FOOD CITY format in 24 Russian regions over the next 4-5 years solely at its own expense.

Our goal is to provide people with a unique opportunity to use modern trading infrastructure and convenient electronic services. This will create a favourable environment for both tenants and buyers, will reduce final consumer prices, create new jobs and generally improve people's quality of life."

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