Main points
- A well-known supermarket chain is closing all its stores in Lviv from June 1 due to difficult competition and changing consumer habits.
- A similar situation may occur in Ivano-Frankivsk, but there is no official confirmation of closures in other cities, in particular Rivne, yet.
End of an era: a well-known supermarket chain closes all stores in Lviv / versii.if.ua
The supermarket chain “Arsen”, which has been operating in Lviv for over 20 years, is closing all of its stores in the city. For the Lviv retail market, this is one of the loudest news of recent times, as “Arsen” was among the first large grocery supermarkets in Western Ukraine.
Why is the Arsen chain closing?
All stores of the chain will cease operations from June 1, writes ZAXID.NET.
The reasons for this decision are not officially commented on, but the market is already talking about difficult competition, changing consumer habits, and retail reformatting.
The chain belongs to the Eurotek group and has been actively expanding in Lviv, Ivano-Frankivsk, and Rivne over the years. The company has launched store reconstructions, opened updated supermarkets, and changed its work format.
- “Arsen” was one of the first large supermarkets in Lviv.
- At its peak, the chain served tens of thousands of customers daily.
What does this mean?
- The Lviv retail market continues to concentrate around a few large players.
- It is increasingly difficult for local chains to compete with national brands.
- Some of Arsen's employees may move to other retail chains.
- Vacant supermarket spaces can quickly be taken over by competitors.
- For many Lviv residents, this is the disappearance of one of the most famous local brands of the 2000s.
Note! The story of “Arsen” shows how quickly Ukrainian retail is changing. What looked like a stable and recognizable business ten years ago may not withstand competition, new formats, and changing customer behavior today. For Lviv, this is not just the closure of stores, but the end of an entire era of local retail.
Details about the “Arsen” chain in Lviv
The first “Arsen” opened in 2002 in the city of Lviv and at the same time became the first supermarket of this format in Western Ukraine, writes Evrotek.
We were the first to offer Lviv residents a diverse range of food products, non-food products, cooking and confectionery products, and we continue to be one of the best,
– they write online.
The founder of the Arsen chain was the Lviv company Intermarket, which has been operating since 1992. The chain was created by Lviv businessman Roman Shlapak – it was named Arsen in honor of his eldest son.
Currently, Arsen supermarkets operate under the legal name Alliance Market LLC and are owned by businessman Mikhail Veselsky. Veselsky also heads the Eurotek trading group, which, in addition to Arsen, includes the Fresh, Soyuz, and Kvartal chains.
The Arsen supermarket chain is represented in three regions – Lviv, Ivano-Frankivsk and Rivne. There are currently 6 stores operating in Lviv:
- Chervonoi Kalyna Avenue, 60.
- 147 Zelena St.
- 37 Patona St.
- Chornovola Avenue, 93.
- Mickiewicz Square, 5.
- 3 Stara St.
Will Arsen stores be closed in other regions?
After the confirmed closure of stores in Lviv, a similar situation is unfolding in Ivano-Frankivsk, Versii writes.
The city is actively discussing the possible closure of the Arsen grocery supermarket in Kaskada. The store in the shopping center will initially operate until June 1.
As local media reported, the staff has already been notified of the closure. The store is officially scheduled to reopen in early June.
Come to us on May 15th – big discounts on everything will start. Because the supermarket is closing. But other stores will continue to work,
– said one of the market workers.
By the way, the Arsen supermarket, which has been operating in Ivano-Frankivsk for about 20 years, is part of a large shopping center opened in 2006 by the Intermarket company. At that time, it was one of the largest shopping centers in the region : the area was about 15,000 square meters, half of which was for the supermarket itself, and the parking lot was designed for 500 cars. Investments in the project were estimated at about $12 million.
As for other cities, in particular Rivne, there is no official confirmation of closure yet.
Why are businesses in Ukraine closing?
As marketing expert Natalia Holovachko notes for Channel 24 , business closures have now become a mass phenomenon, not isolated cases.
Statistics show that 11% more entrepreneurs closed their businesses last year than the year before. This wave affects different regions: in Kyiv, about 120 restaurants closed in a year, in Lviv – about 50. Over a third of all closures are in retail trade.
The expert explains that among the reasons for such mass closures are both a drop in demand and solvency, and a shortage of personnel.
Natalia Golovachko
Founder of Marketing Club Lviv
Due to the war and inflation, people are saving significantly, there are fewer customers in establishments. In addition, tariffs, rent, and taxes have increased.
And another influencing factor is that due to mobilization and migration, businesses are experiencing a shortage of workers.
For Channel 24, client expert Anastasia Yamelinets adds that business closures are mainly due to the accumulation of various changes. The expert also speaks of a significant increase in financial burdens, such as costs for logistics, rent, personnel, energy, etc. In addition, consumer behavior has changed significantly.
For example, according to the marketing company Kantar, purchases are becoming more rational: people compare alternatives more often, reduce the frequency of purchases, and are more sensitive to price.
Anastasia Yamelynets
Client Partner at Kantar
Businesses that fail to adapt to these changes or continue to operate in a “business as usual” model and do not support their decisions with up-to-date data quickly lose their sustainability.
And given the situation in the country, one of the main factors for closure is war risks. Businesses may suffer from disruptions in work, customer migration, and supply instability.
No less important is the psychological factor: uncertainty, pent-up demand, and reduced willingness to invest.
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