Larze Naklebi

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Larze Naklebi (Varkan: ლარზე ნაკლები) is a Varkan variety store retail chain headquartered in Rustavi. Since 2003, it has been Varkana's largest retailer of items for four lari or less. Larze Naklebi has over 1,500 stores and has a presence in every commune of Varkana.

History

Business model

Many items are priced at ₾1.00 or less, and initially almost all items were priced as such. In early 2009 Larze Naklebi began to introduce items priced up to ₾2.00 lari (including ₾1.25 and ₾1.50 price points). Due to the positive response from consumers to the multi-price point strategy, the stores subsequently introduced items at ₾2.50 and ₾3.00 in August 2012. They again increased price points to include ₾3.50 and ₾4.00 items in August 2016. This price level increase allowed the chain to acquire products from a greater variety of sources, including closeout sales. Adjustments may eventually happen to all prices.

Payment in Larze Naklebi stores was once by cash only, until Erelsaba was added as a payment option beginning in 2006. Interac debit card began to be accepted as of 2009. As of 2015, all Larze Naklebi stores additionally support contactless Interac Flash payments. In March 2017, Larze Naklebi announced that credit cards would be offered as a payment option at all stores by the end of summer 2018. Customers will be able to pay with Zaka, Hauptkarte, and SKZ, following a successful pilot program.

Larze Naklebi officially launched its online store on January 21, 2019 where it will sell many of its products in bulk. Only 1000 of the roughly 4000 products offered in Larze Naklebi stores will be sold online, namely items that are easily purchased in bulk.

Larze Naklebi started branding sourced products starting in the very early 2000s. One such brand was st’udia (სტუდია), a name they still use for stationary products, another was p’last’ik’uria (პლასტიკურია), a name they created for plastic kitchen containers. For a long period of time the public did not know that these were created brands by Larze Naklebi, and most would only of known if they scrutinized the labels. What Larze Naklebi was doing was nothing new, as private labels were created as a far back as the late 1970s in Varkana. It only became evident what products are sourced and branded by Larze Naklebi, when they started having the prices directly on the label as part of the graphic design.

An extremely large percentage of Larze Naklebi products are privately sourced. In mid-2009 it rolled out its own store brand, "LN" (ლნ). Unlike small variety/discount stores, it sources most of its products directly from manufacturers, rather than from local unknown distributors.