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X5 Retail Group to acquire 27 stores from Nash and Gurman retail chains in the Republics of Mari El and Chuvashia to open new Pyaterochka stores and Perekrestok supermarkets

Yoshkar-Ola, 2015-4-29 — /EPR Retail News/ — X5 Retail Group, a leading Russian food retailer, announces the acquisition of 27 stores belonging to the Nash and Gurman retail chains in the Republics of Mari El and Chuvashia. X5 will use the purchased selling space to open new Pyaterochka stores and Perekrestok supermarkets.

Before the deal, the stores were managed by Universal LLC. 26 out of the 27 acquired facilities are located in the Republic of Mari El (Yoshkar-Ola, Volzhsky), and one store is based in the Rebublic of Chuvashia (Cheboksary). Six of the retail facilities are branded as Gurman, while the remaining ones make up the Nash chain.

The Perekrestok chain will integrate three stores (including the one in Cheboksary) and other stores will be rebranded as Pyaterochka. The integration of all the facilities is expected to be completed in 1H 2015. The acquired stores have an average selling space of 600–700 sq m and are all leased.

Those of the Nash and Gurman staff who would like to continue their jobs at the new Pyaterochka and Perekrestok stores will be offered employment after they complete supplementary training courses.

The newly acquired facilities will be refurbished in line with the new Pyaterochka and Perekrestok concepts. The chains will seek to expand their fresh product offering (fruits, vegetables, dairy, confectionery and bakery) and thereby provide additional opportunities for local suppliers to establish cooperation with the national retail chains. In terms of pricing, Pyaterochka and Perekrestok target all social groups, frequently offering attractive promotions and seasonal discounts.

In the Republic of Mari El, X5 currently runs a total of 34 Pyaterochka stores, 3 Perekrestok supermarkets, and one Karusel hypermarket. The nearby Chuvashia Republic has 54 Pyaterochka stores, 3 Perekrestok supermarkets, and 2 Karusel hypermarkets. The closest distribution centres are located in Dzerzhinsk and Kstovo (Nizhny Novgorod region).

Note to Editors:
X5 Retail Group N.V. (LSE: FIVE, Fitch – ‘BB’, Moody’s – ‘B1’, S&P – ‘BB-’) is a leading Russian food retailer. The Company operates several retail formats: the chain of proximity stores under the Pyaterochka brand, the supermarket chain under the Perekrestok brand, the hypermarket chain under the Karusel brand and Express convenience stores under various brands.

At 31 March 2015, X5 had 5,639 Company-operated stores. It has the leading market position in both Moscow and St. Petersburg and a significant presence in the European part of Russia. Its store base includes 4,958 Pyaterochka proximity stores, 405 Perekrestok supermarkets, 83 Karusel hypermarkets and 193 convenience stores. The Company operates 33 DCs and 1,407 Company-owned trucks across the Russian Federation.

For the full year 2014, revenue totaled RUB 633,873 mln (USD 16,498 mln), EBITDA reached RUB 45,860 mln (USD 1,194 mln), and profit for the period amounted to RUB 12,691 mln (USD 330 mln).

X5’s Shareholder structure is as follows: Alfa Group – 47.86%, founders of Pyaterochka – 14.43%, X5 Directors – 0.04%, treasury shares – 0.04%, free float – 37.63%.

For further details please contact
Maxim Novikov
Head of Investor Relations
Tel.: +7 (495) 502-9783

Anastasiya Kvon
IR Director
Tel.: +7 (495) 792-3511

EPR Retail News