Chaos, indecision and uncertainty – this is why the opening of Mere in Hungary is delayed

Four companies, one goal, zero progress

Mere’s expansion in Hungary is being coordinated not by a single company, but by four different companies – TS Retail Kft., Hungarétel Kft., Huntorg Service Kft. and Shoper Kft. Each company has a Serbian parent company, and their majority owners are Mere founder Sergei Schneider and his brother, Andrej Schneider. The model was inspired by the operating structure of the Russian Svetofor store network, in which separate companies in each region are responsible for purchasing and operating the stores. However, in Hungary, this structure has so far caused more problems than benefits.

The four different companies set up separate teams and were forbidden from cooperating. As a result, they negotiated with the same suppliers several times, without knowing about each other’s offers, which resulted in confusion and distrust among business partners.

Unfeasible business model

Mere’s strategy in Hungary was based on the premise that their stores could only survive after a three-month trial period if they became profitable. However, the company did not want to take on the associated risk, but tried to shift it to the suppliers and the owners of the business premises. The company wanted to conclude lease agreements with or without a minimum deposit, which made renting the premises almost impossible. It would also have left the transformation of the buildings to the owners, who did not accept this.

Suppliers were also offered unfavorable contract terms: they would have to arrange the delivery of the products to the stores themselves, and Mere would only pay for the goods sold, and would return damaged or unsold products without payment. This model may work in Russia, but in Hungary the majority of suppliers rejected it.