Tengelmann Group has officially confirmed its plans to open 12 stores this year, 150 by 2022

Tengelmann's discount grocery chain Plus stores will operate in a limited-range discount format, offering 2,200 items each of which 70 percent will be food.

Russian newspaper Vedomosti reports the low-price retailer will open stores across the Moscow, Tula and Nizhny Novgorod regions, as well as in the cities of Kaluga, Tver and Murom. The plan is to expand the chain to 150 locations in Russia within the next seven years.

Russian market attractive to Western companies looking to expand

Russia’s budget grocers have seen a significant rise in profits. Main budget store, Magnit, saw first-quarter profits rise 36 percent year-on-year, while rival Lenta recorded a 37.7 percent jump in the same period.

Tengelmann first entered the Russian market in 2004 with its DIY-store OBI.

Tengelmann Group was founded in 1867, and belongs to the family of 82-year-old German businessman Erivan Houba, whose fortune is estimated at $3.1 billion in 2015, according to Forbes (577 place in the global ranking).

The turnover of the group which operates in 17 European countries amounted to 7.82 billion euros in 2013.

In addition to the OBI stores Tengelmann operates networks of KiK clothing stores, grocery supermarkets Kaiser's, as well as a number of online retailers such as plus.de. At the end of 2013 Tengelmann’s had 4,151 store, 3,245 of them in Germany.