STAR IS PLANNING TO INCREASE ITS CAPITAL

ArmInfo
2009-10-29 16:50:00

ArmInfo. The shareholders of STAR, the biggest supermarket network
in Armenia, have decided to increase the company’s capital, STAR CEO
Vahan Kerobyan said during the opening of the renovated supermarket
at 21 David Anhakht Str. today.

The increase of the capital by the shareholders – Henrik Zakharyan
(71.7%) and the European Bank for Reconstruction and Development
(28.3%) – will help the company to implement its capital and long-term
plans. The money will be spent on reduction of obligations to suppliers
and opening of new supermarkets in Yerevan. "We are going to spend
part of the money to improve purchasing terms and to increase our
margin," Kerobyan said.

He said that STAR has carried out a large-scale reorganization program
on the basis of international standards. As a result, the efficiency
of the company has grown by 2.5 times.

"We have started to focus our attention on network operations,
particularly, on new marketing solutions. As a result, we have achieved
serious results. But we have much to do yet to attain the level of
our colleagues in Europe and the United States," Kerobyan said.

He said that STAR has significantly improved its stock line on the
basis of local and international experience.

The renovated supermarket at 21 David Anhakht Str. was opened in July
2006 and was the third store of the network. Now, the store has been
harmonized with all retail trade standards. "Due to rearrangement,
we have increased the window space by 20% and have enlarged the
assortment of non-food and seasonal commodities," Kerobyan said.

The shop sells almost 10,000 items: 80% of them are food, 20% non-food
products. This is a 100% self-service facility with state-of-the-art
illumination and air conditioning. The shopping space is 630 sq
m. The supermarket has almost 50 shop assistants, 6 points of sale,
drugstore, pawnshop, cleaner’s, AFC cafe.

As regards the growing competition on the retail trade market,
Kerobyan said that sometimes the advantages of high competition are
zeroed by tax inequality.

The State Income Committee of Armenia reports that in Jan-Sept 2009
STAR Divide was among the 300 biggest tax payers of Armenia. The STAR
network was launched in 1998 and has 13 supermarkets (12 in Yerevan
and 1 in Hrazdan).