Foodstuffs North Island to develop one of New Zealand’s largest office and distribution centres at The Landing Business Park, Auckland Airport

  • Designed for our future and to deliver great value for customers at PAK’nSAVE, New World, Four Square, Gilmours, Liquorland and Fresh Collective
  • Construction starts in 2018 with completion scheduled for late 2020, as next stage of Foodstuffs’ nearly 100-year commitment to New Zealand

AUCKLAND, New Zealand, 2018-Feb-08 — /EPR Retail News/ — Foodstuffs North Island has announced that it is moving its primary Distribution Centre (DC) and Support Office from its long term home in Roma Road in Mount Roskill and building an exciting and innovative complex at The Landing, Auckland Airport.

Chief Executive Chris Quin, says Foodstuffs North Island has been at its current site for 53 years and is rapidly outgrowing that space.

“We’ve been an important part of New Zealanders’ lives and communities for nearly 100 years and we plan on being around for many years to come. To do this we need better facilities to deliver what our customers at PAK’nSAVE, New World, Four Square, Gilmours and Liquorland and Fresh Collective need from us for the future. We’re planning significant future growth across the business and our success depends on being nimble, efficient and continuing to attract the best talent, who work in an agile and collaborative way.”

Foodstuffs has made some big changes over the past few years, guided by its purpose of making sure New Zealanders get more out of life. Foodstuffs’ supermarket customers, along with Gilmours and Liquorland, have seen major changes including the introduction of New World Clubcard, online shopping, support for Kiwi children in partnership with Eat My Lunch and new and improved Pams and Value products. The team has also been working on major sustainability programmes designed to drive waste out of the business and look after New Zealand’s environment.

Behind the scenes Foodstuffs has been working hard to improve efficiency and allow the business to keep prices low and quality and service high.

“Key to our success is developing a world-class supply chain to ensure we have a great offer for our customers in store and online every day. This new 65,000m2 distribution centre and 5 Greenstar rated office complex will be at the heart and will enable our Co-op to work more collaboratively and effectively.”

It’s also proposed to consolidate three Foodstuffs facilities in Auckland into one best-in-class complex. The Co-op will continue to operate two DCs and a Support Centre in Palmerston North and a Support Centre in Wellington.

As part of these changes Foodstuffs North Island is proposing to close the Rotorua DC at the end of 2020 and move those operations to the new DC. Quin says, “In making the decision to build the new DC, we have been looking at all the options possible to make the Upper North Island operations as efficient as possible and fit for purpose over the next 30 years. Long term, we believe that the best option is to support our Upper North Island stores with one purpose-built Ambient DC.

“We wanted to share our proposal to close the Rotorua DC with our teams early in the project. If the proposal does go ahead, we feel it would be the right thing to do to give the team lots of notice and time to plan for the change.”

Foodstuffs North Island has yet to decide the future of its Roma Road site and will be working closely with a number of stakeholders, including local government, to determine the best use of the land in the interests of Auckland. “The Mt Roskill site is now considered almost inner-city – and we’re excited about unlocking this space.”

Quin says, “Right now, it’s about continuing to deliver for customers every day. We’ll remain at our legendary home in Mt Roskill until the new site is ready in 2020 and then we’ll be packing up and moving out to a bright, new, expansive future at The Landing.

“Our customers’ needs are changing fast and we believe all New Zealanders deserve more of what matters to them. For some this is more inspiration, more choice, more convenience, more value and more help making healthier food choices. For others, it’s all these things and more. We need to make sure we’re ready to face these changes head on.

“Based at the gateway to Aotearoa, our 100% New Zealand owned company will have a fantastic new centre with service at its heart. We’re totally committed to playing a key role in New Zealand’s future and helping meet the needs and aspirations of our team and customers.”

MEDIA ENQUIRIES:

Foodstuffs Communications Team Phone: 0800 376 3342

Source: Foodstuffs

X5 strengthens its logistics operations with the opening of two new distribution centres in Yekaterinburg, Russia

Yekaterinburg, 2017-Jul-12 — /EPR Retail News/ — X5 Retail Group N.V. (“X5” or “the Company”), a leading Russian food retailer (LSE ticker: “FIVE”), announces the launch of two new state-of-the-art distribution centres (“DCs”) in Yekaterinburg: “Yekaterinburg” and “Kosulino”. The new DCs will help boost the efficiency of X5’s logistics operations, encourage more local sourcing and provide the best available prices to customers in the Ural, Volga and Siberian Federal Districts.

The Yekaterinburg DC has over 35,500 sq m of space and will service 1,260 Pyaterochka stores in the Sverdlovsk, Tyumen, Chelyabinsk, Kurgan, Novosibirsk, Omsk and Kemerovo regions, Khanty-Mansi Autonomous Area – Yugra, Yamal-Nenets Autonomous Area, and Perm territory. Featuring six storage zones with individual temperature bands, the facility is designed to accommodate all categories of goods.

The Kosulino DC consists of 13,700 sq m and will support supplies to 36 Perekrestok supermarkets and 9 Karusel hypermarkets in the Sverdlovsk, Tyumen, Chelyabinsk regions, Perm territory, and Khanty-Mansi Autonomous Area – Yugra. Featuring five storage zones, the DC is the first to service the Perekrestok and Karusel chains in the Urals.

The new DCs will ensure the freshness and availability of goods as X5 continues its rapid expansion. They will also help to cut transportation costs and unlock new opportunities for local producers. The DCs will also help to increase sales volumes for local producers and make their products available in new regions. At its full capacity, the Yekaterinburg DC will be able to handle and store products from over 480 suppliers, and the Kosulino DC will handle over 1,000 suppliers. The share of local goods in the product mix of Pyaterochka stores in the Sverdlovsk region is 35%, while for Perekrestok and Karusel it exceeds 20%.

Following the launch of the two DCs, the number of jobs created by Pyaterochka, Perekrestok and Karusel in the Sverdlovsk region will exceed 6,500. The Yekaterinburg DC will operate around-the-clock with the help of 480 local residents, while the Kosulino DC will employ 105 local staff.

The opening ceremony for the DCs, which took place during the INNOPROM International Industrial Trade Fair, was attended by Deputy Prime Minister of the Russian Federation Arkady Dvorkovich, Deputy Minister of Industry and Trade of the Russian Federation Viktor Evtukhov, and the CEOs of Pyaterochka and Perekrestok, Olga Naumova and Vladimir Sorokin.

The Yekaterinburg DC is among the most high-tech in Russia. The centre will deploy innovative solutions like dynamic slotting (a mathematical algorithm that provides for a shorter run for the picker based on order histories), voice picking (goods picked with the help of a voice terminal), EDI systems to maintain shelf availability and plan sales, and RFID technology to label goods and monitor their movement online. All these solutions, along with biometric employee identification, will help double labour productivity compared to peers.

X5 Retail Group invited managers of over 150 major suppliers from the Ural, Volga, and Siberian Federal Districts to the event. After the ceremony, the Kosulino DC hosted the X5 Dialogue Forum, where representatives of X5 Retail Group’s chain stores shared X5’s best practices in partnering with local suppliers and food producers. The local manufacturers received valuable advice on how to build relationships with retail chains, including information on product quality controls and requirements for transportation, storage, sales and disposal of food products set out in the Customs Union’s and X5’s applicable technical regulations.​

For further details please contact:
Maxim Novikov
Head of Investor Relations
Tel.:+7 (495) 502-9783
e-mail: Maxim.Novikov@x5.ru

Andrey Vasin
Investor Relations Officer
Tel.:+7 (495) 662-88-88 ext. 21-456
e-mail: Andrey.Vasin@x5.ru

Source: X5 Retail Group

X5 Retail Group opens two distribution centres in the Republic of Adygeya to develop its logistics infrastructure in the South of Russia

Maykop, Russia, 2016-Aug-23 — /EPR Retail News/ — X5 Retail Group N.V. (“X5” or the “Company”), a leading Russian food retailer (LSE ticker: “FIVE”), announces the opening of two distribution centres (DC) in the Republic of Adygeya as part of the Company’s strategy to develop its logistics infrastructure in the South of Russia. The state-of-the-art logistics facilities, Yuzhny and Adygeya, will boost the efficiency of X5’s supply chain and encourage more local sourcing.

X5’s Chief Executive Officer Igor Shekhterman said: “We have now opened four distribution centres year to date: in St. Petersburg, in Moscow Region and two in the South of Russia. Our logistics infrastructure is now more than just a platform to support the development of our own retail chain. With each new DC, we also provide more and better sales opportunities for our partners, especially local food producers.”

Spanning over 33,000 sq m, the Yuzhny logistics facility will support supplies to 245 Pyaterochkas in 105 towns and cities of the Krasnodar and Stavropol Territories, and the Republics of Adygeya and Karachay-Circassia.

Yuzhny DC, Pyaterochka’s second DC in the Southern Federal District, will support the retail chain’s continued rapid growth in the South of Russia. The new DC will handle part of the traffic which is currently dealt with by Rostov DC in Rostov-on-Don. The launch of Yuzhny will shorten the DC-to-store distance by over 1.5 times for each of the two DCs. Featuring nine storage zones, all with a specific temperature band (from -21 to 25°С), Yuzhny can accommodate all categories of goods.

The Adygeya logistics facility (13,500 sq m) is meant to service Perekrestoks and Karusels in the Krasnodar and Stavropol Territories and in the Rostov Region. The DC will ensure smooth delivery to 27 Perekrestok supermarkets and two Karusel hypermarkets in the South of Russia.

The DC opening ceremony was attended by Aslan Tkhakushinov, Head of the Republic of Adygeya, Olga Naumova, CEO of Pyaterochka, and Denis Shulga, Logistics Director of Perekrestok. They discussed the benefits for the region derived from the continued development of X5’s logistics operations. The opening of the Yuzhny and Adygeya Distribution Centres created over 240 new jobs in the region.

X5 also invited managers of over 50 supplier companies from the Krasnodar and Stavropol Territories, the Rostov Region and the Republic of Adygeya to take part in the ceremony. The launch of the new logistics facilities offers them considerable new opportunities to develop their cooperation with X5’s retail chains, materially reducing logistics costs and boosting supplies to X5 stores, including by taking advantage of X5’s expanded geographic footprint. More than 30 local suppliers are already capitalising on the opportunities offered by the new X5 facilities.

This supply chain centralisation will also increase the share of local suppliers in the product mix of X5’s stores in the region. The share of locally produced items in the Pyaterochka, Perekrestok and Karusel stores stands at around 30%, while in some categories (such as bread and bakery) it reaches as much as 95%.

X5 started implementing its logistics separation strategy in 2013 with a view to splitting product flows for convenience stores, on the one hand, and supermarkets and hypermarkets, on the other hand. Single format DCs are instrumental in maximising product traffic centralisation, streamlining deliveries and in-store product ranges. The logistics split across X5’s retail chains is scheduled for completion this year.

Note to Editors:

X5 Retail Group N.V. (LSE: FIVE, Fitch – ‘BB’, Moody’s – ‘Ba3’, 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.

As of 30 June 2016, X5 had 7,936 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 7,164 Pyaterochka proximity stores, 493 Perekrestok supermarkets, 89 Karusel hypermarkets and 190 convenience stores. The Company operates 35 DCs and 1,469 Company-owned trucks across the Russian Federation.

For the full year 2015, revenue totalled RUB 808,818 mln (USD 13,268 mln), Adjusted EBITDA reached RUB 59,413 mln (USD 975 mln), and net profit for the period amounted to RUB 14,174 mln (USD 233 mln). In H1 2016, revenue totalled RUB 483,244 mln (USD 6,878 mln), EBITDA reached RUB 36,498 mln (USD 519 mln), and net profit amounted to RUB 13,004 mln (USD 185 mln).

X5’s Shareholder structure is as follows: Alfa Group – 47.86%, founders of Pyaterochka – 14.43%, X5 Directors – 0.06%, treasury shares – 0.01%, free float – 37.64%.

Forward looking statements:

This announcement includes statements that are, or may be deemed to be, “forward looking statements”. These forward-looking statements can be identified by the fact that they do not only relate to historical or current events. Forward-looking statements often use words such as “anticipate”, “target”, “expect”, “estimate”, “intend”, “expected”, “plan”, “goal”, “believe”, or other words of similar meaning.

By their nature, forward-looking statements involve risk and uncertainty because they relate to future events and circumstances, a number of which are beyond X5 Retail Group N.V.’s control. As a result, actual future results may differ materially from the plans, goals and expectations set out in these forward-looking statements.

Any forward-looking statements made by or on behalf of X5 Retail Group N.V. speak only as of the date of this announcement. Save as required by any applicable laws or regulations, X5 Retail Group N.V. undertakes no obligation publicly to release the results of any revisions to any forward-looking statements in this document that may occur due to any change in its expectations or to reflect events or circumstances after the date of this document.

Contact:

Maxim Novikov
Head of Investor Relations
Tel.: +7 (495) 502-9783
e-mail: Maxim.Novikov@x5.ru

Andrey Vasin
Investor Relations Officer
Tel.:+7 (495) 662-88-88 ext. 21-456
e-mail: Andrey.Vasin@x5.ru

Source: X5 Retail Group N.V.

X5 Retail Group commissioned six new distribution centres in 2015

Moscow, Russia, 2016-Feb-08 — /EPR Retail News/ — X5 Retail Group commissioned six new distribution centres (DCs) with a total area of 142 thousand sq. m. in 2015. The DCs service X5’s retail network across a number of high-potential geographies: the Kaluga, Voronezh and Chelyabinsk regions, as well as Moscow and Tatarstan.

Four of the new DCs are new-builds being leased by X5, one was added under a thirdparty logistics (3PL) contract, while the DC in Moscow was relaunched following complete renovation. The new DCs in St. Petersburg, Voronezh and Kazan provide safe storage across all temperature bands, reducing stores’ overall cost of delivery, as a full range of products can be shipped from a single DC.

X5’s new logistics centres strengthen the connection between food producers and shoppers, and help to increase levels of sourcing from local suppliers. Strengthening distribution infrastructure is a priority for X5 over the next five years. The Company plans to increase the pace of development of its logistics infrastructure in 2016.

X5’s total warehousing capacity increased by more than 82 thousand sq. m. in 2015. During the year, X5 put more new DCs into operation than any other major Russian retailer, and ranked second by total warehousing space added (data from analytical agency Infoline).

X5’s distribution centres serve more than 7,000 stores, ensuring seamless logistics operations for the Company and its suppliers. As of 31 December 2015, X5 operated 35 distribution centres and owned a fleet of 1,561 trucks.

Note to Editors: X5 Retail Group N.V. (LSE: FIVE, Fitch – ‘BB’, Moody’s – ‘Ba3’, 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.

As of 31 December 2015, X5 had 7,020 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 6,265 Pyaterochka proximity stores, 478 Perekrestok supermarkets, 90 Karusel hypermarkets and 187 convenience stores. The Company operates 35 DCs and 1,561 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). In 9M 2015, revenue totaled RUB 578,701 mln (USD 9,763 mln), EBITDA reached RUB 41,780 mln (USD 705 mln), and net income amounted to RUB 12,084 mln (USD 204 mln).

X5’s Shareholder structure is as follows: Alfa Group – 47.86%, founders of Pyaterochka – 14.43%, X5 Directors – 0.06%, treasury shares – 0.02%, free float – 37.64%.

For further details please contact:
Maxim Novikov
Head of Investor Relations
Tel.:+7 (495) 502-9783
e-mail: Maxim.Novikov@x5.ru