MTS has reduced its retail network

In the first quarter MTS reduced the number of stores in its retail network of approximately 500 stores, said the Vice-President of MTS, sales and service Kirill Dmitriev at a press conference in London, the correspondent of RBC. Now the network of the company consists of 5725 salons (by the end of 2016 — 6194). “Until the end of 2017 we can cut a few hundred stores, but everything will depend on the actions of our competitors,” — said Dmitriev.

MTS began to build up its retail network, after it was forced to cease cooperation with a multi-networks “the Euronetwork” and “Coherent”. 50% of Euroset is controlled by the competitors of the operator “VympelCom” and “MegaFon” and “Svyaznoy” — the brother of the President “Euroset” Alexander Malis Oleg Malis. As explained in MTS, both the retailer prefer to sell contracts for connection to competing carriers, which the company stopped selling their contracts in these networks and began to build its own retail and is now the largest mobile retailers in Russia. However, the number of salons has a negative impact on margins of the operator.

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