X5 and Rus Food Foundation to food drive events in Moscow, Yekaterinburg, Nizhny Novgorod, Kazan and Novosibirsk

MOSCOW, Russia, 2018-Feb-09 — /EPR Retail News/ — X5 Retail Group N.V. (“X5” or the “Company”), a leading Russian food retailer (LSE and MOEX ticker: “FIVE”), and Rus Food Foundation, the first Russian food bank, announce their transition to a new format for collecting food aid. In 2018, the partners plan to organise city-wide food marathons in Moscow, Yekaterinburg, Nizhny Novgorod, Kazan and Novosibirsk. The first marathon will take place in Kazan on 3 March 2018, with the Foundation’s volunteers collecting food aid for socially vulnerable senior citizens of the Republic of Tatarstan at all of Kazan’s Pyaterochka, Perekrestok and Karusel stores.

This approach is a scaled-up version of the food drive technique employed in the Basket of Kindness campaign. It will help to increase audience engagement and enable the organisers to gather more food. In 2017, X5 Retail Group and Rus Food Foundation staged Basket of Kindness events at 803 Pyaterochka, Perekrestok and Karusel stores, with customers buying and donating some 80 tons of non-perishable foods. The aid was provided to 6,000 low-income families and senior citizens from various Russian regions.

Food for the Villages, the first city-wide food marathon, took place on 2 December 2017 at 200 of Moscow’s Perekrestok supermarkets, as well as at some Dixy and Billa stores. Customers donated over 30 tons of food, which translated into gift sets for approximately 15,000 senior citizens in nine regions. The Moscow food marathon showed the effectiveness of city-wide actions, and this was chosen as the key format for the Basket of Kindness project.

In order to maximise engagement in the food aid drive, in 2018, X5 and Rus Food Foundation will continue promoting their online charity food store at корзинадоброты.рф. This website was launched in late November 2017, and in the first two months it had over 30,000 unique visitors from all over Russia. In addition to providing information about the project’s history and status, the website offers multiple ways to participate in the initiative, starting from submitting a volunteer application to donating food. It also enables visitors to buy a food set online and to donate goods ranging in price from RUB 150 to RUB 2,000. The sets include essentials for a family diet, including cereals, pasta, sunflower oil, canned goods, tea and sweets. In the first two months, the Basket of Kindness online charity store sold over RUB 300,000 worth of food sets. The aid recipients include elderly people living alone, single mothers, large families with extremely low income and orphans.

SOURCE: X5 Retail Group N.V.

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.

Russian food retailer X5 opens its first Karusel hypermarket in Klin, Moscow region

Klin, 2017-Dec-04 — /EPR Retail News/ — X5 Retail Group N.V. (“X5” or the “Company”), a leading Russian food retailer (LSE ticker: “FIVE”), announces the opening of its first Karusel hypermarket in Klin, Moscow region.

The new store, boasting a sales area of around 4,200 sq m, is located in a stand-alone building near Leningradskoe Highway at 9 Pobedy St.

The hypermarket offers 19,000 SKUs. Karusel cooperates closely with domestic suppliers: 90% of its food products are manufactured in Russia. The store’s suppliers include Moscow region producers, such as the Klinsky Bread Baking Complex, Shelkovohleb, Dedovsky Khleb, the Elinar-Broiler Poultry Farm and CHERKIZOVO Trading House.

The Karusel hypermarket features a wide range of products prepared in-store. Its bakery makes delicious fresh tandoor flatbreads and pizza. In addition to the standard menu items, the store cooks will take customised orders.

With 24 checkouts, this Karusel store will have a high throughput even during peak hours. The new hypermarket helped create over 170 new jobs.

X5 operates 11 Karusel hypermarkets in the Moscow region.

Karusel hypermarkets are one-stop shops for a variety of reasonably priced products. In addition to affordable prices, Karusel offers discounts for pensioners (5% from opening until 1 pm) and frequent shoppers (Karusel loyalty cardholders), as well as seasonal sales and special promotions.

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 N.V.

X5 announces the opening of its 11,500th store located in Samara, Russia

Samara, 2017-Nov-20 — /EPR Retail News/ — X5 Retail Group, (“X5” or the “Company”), a leading Russian food retailer (LSE ticker: “FIVE”), announces the opening of its 11,500th store. The landmark store is a Karusel hypermarket located at 4 Georgi Dimitrov Street in Samara.

Spanning over 4,000 sq m, the new Karusel features a modern lighting system in the shopping space for customers’ convenience. The new compact shelving system makes navigation easier, with every department visible from anywhere in the store.

Customers can also take a break from shopping, relax and grab a bite to eat at the cosy café located inside the shopping area. There are 18 checkouts and four self-checkout units in the hypermarket to boost throughput in rush hours.

The landmark store offers around 19,000 SKUs, more than half of which are food products. The bakery makes delicious fresh tandoor flatbreads and pizza. Some 50 local producers supply around 900 SKUs to this Karusel, which uses their products, for example, to make its own ready-to-eat foods. In addition to the menu items on display, the store’s cooks will take customised orders.

The new hypermarket has created more than 140 jobs for the local community, is the fifth in Samara and the sixth in the Samara region.

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 N.V.

Russian food retailer X5 opens its trade representative office in Hong Kong

Moscow, 2017-Nov-09 — /EPR Retail News/ — X5 Retail Group N.V. (“X5” or the “Company”), a leading Russian food retailer (LSE ticker: “FIVE”), announces the opening of its trade representative office in Hong Kong. A permanent presence in Hong Kong, the business getaway to South-Eastern Asia, will enable X5’s procurement team to improve purchasing terms and build up the share of direct imports in a number of product categories, primarily fruit, vegetables, seafood and non-food goods.

The Hong Kong office is X5’s first trade representative office abroad. Looking forward, X5 is also considering opportunities to establish similar trade offices in Central Asia and South America. Direct engagement with foreign suppliers, bypassing distributors, will enhance the quality of X5’s offering to customers, by enhancing its control over production standards and mitigating risks of supply shortages.

Ramping up direct imports of goods that are not produced in Russia and seasonal products has been among X5’s top priorities since 2016. In 2017, the number of countries where X5 has direct relationships with suppliers reached 27. Direct imports already account for almost 50% of supplied fruit and berries. In the 18 months after the launch of the direct import programme, the total number of direct suppliers reached 200.

In 2017–2018, X5 intends to establish direct imports from another six countries – Bosnia, Mexico, Namibia, Madagascar, New Zealand and Iran. The Company is open to cooperation with producers from other countries looking to tap into the Russian market and is ready to offer favourable procurement terms.​

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 N.V.

X5 announces the opening of a new distribution centre in the Moscow region

MOSCOW, Russia, 2017-Oct-23 — /EPR Retail News/ — X5 Retail Group (“X5” or “the Company”), a leading Russian food retailer (LSE: FIVE), announces the opening of a new distribution centre (DC) in the Moscow region.

The 43,000 sq m Moscow-North logistics facility will serve 650 Pyaterochka stores in Moscow and in the Moscow and Tver regions. Featuring five separate temperature zones, the facility is designed to store nearly all categories of goods.

The new logistics centre will help support Pyaterochka’s rapid expansion with a reliable supply of fresh goods, contribute to lower transportation costs and unlock new opportunities for local producers. The Moscow-North DC will be a focal point for local suppliers by helping them to increase sales and bring their products to new regions. It will also help significantly cut delivery costs for contractors. The new distribution centre is ready to handle products from over 500 suppliers.

The Moscow-North DC is one of the most high-tech of its kind in Russia. It employs innovative solutions that streamline operations and increase labour productivity. The DC is also one of the first projects to implement cutting-edge merchandise distribution control systems such as USAIS (Unified State Automated Information System) and Mercury.

The opening of X5’s new distribution centre has created 600 jobs.

The DC opening ceremony was attended by Alexander Kalinin, President of the OPORA Russia public association of small and medium-sized businesses, Olga Naumova, Pyaterochka CEO, and representatives of government authorities. Х5 Retail Group also invited its suppliers to the event. For suppliers, the Moscow-North DC hosted an X5 Dialogue Forum and the Chain Reaction business game after the opening. Organised in cooperation with OPORA Russia, these were held to communicate X5’s key business principles to its current and potential suppliers.

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 N.V.

RUSSIA: X5 opens newly refurbished Karusel hypermarket on Savushkin Street in St Petersburg

Moscow, 2017-Oct-17 — /EPR Retail News/ — X5 Retail Group (“X5” or “the Company”), a leading Russian food retailer (LSE: FIVE), announces the opening of a refurbished Karusel hypermarket on Savushkin Street in St Petersburg. The redesigned store is the first to feature the updated Karusel logo and some other elements of the chain’s new concept.

The hypermarket’s interior design and indoor navigation are tailored to offer customers a premium shopping experience. Low shelves enable easier navigation, while tall merchandise showcases and clear signposting make it easy to find sections from almost anywhere in the shopping area. The hypermarket also uses innovative product storage systems in the shape of playhouses, split-level podiums, etc. The wooden interior and distinctive product layout make the liquor section look like a speciality boutique.

The new Karusel’s food court has four zones, including a pizza place, sushi bar, confectioner’s and a 250-seat restaurant. Customers can also buy ready-to-cook products to take home from the deli counter (though prices for some menu items in the restaurant are the same as at the deli counter). For the convenience of customers, trolley parks are located before the food court so customers can lock and leave their shopping trolleys before going in.

The selling space of the new hypermarket exceeds 5,700 sq m, with a product mix totalling more than 25,000 SKUs. 90% of the food offering comprises goods produced in Russia, with local suppliers from St Petersburg and the Leningrad region (over 100 companies in total) delivering fresh baked products, cakes, meat, cheese and dairy products, eggs and more. The product mix includes over 1,800 SKUs from local suppliers, accounting for more than 30% of the fresh and ultra-fresh categories.

The new Karusel created a total of 162 new jobs.​

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 to divest small-format convenience stores operating under the Perekrestok Express brand in Moscow

Moscow, 2017-Oct-17 — /EPR Retail News/ — X5 Retail Group (“X5” or “the Company”), a leading Russian food retailer (LSE: FIVE), plans to concentrate on its three major formats: Pyaterochka proximity stores, Perekrestok supermarkets and Karusel hypermarkets. The Company’s small-format convenience stores operating under the Perekrestok Express brand in Moscow will be put on sale. X5 has selected Renaissance Capital to assist with preparation of the deal. Perekrestok Express accounts for less than 1% of X5’s revenue.

X5 Retail Group CEO Igor Shekhterman said: “Convenience stores like those that Perekrestok Express operates in Moscow, which have a selling space of up to 200 sq m, certainly have potential. However, they represent a fairly narrow segment of Russia’s modern food retail market, in which proximity stores, supermarkets and hypermarkets occupy more than a 90% share. With our market share in these formats steadily growing, we have decided to focus our full attention on continuing to develop the customer value propositions of Pyaterochka, Perekrestok and Karusel, including in Moscow.”

This year, X5 has successfully bolstered its major retail formats, while also improving the quality of its store portfolio in Moscow. To achieve this, the Company has, among other things, leased over 100 premises that previously hosted Monetka and Sedmoi Kontinent stores. By the end of this year, these locations will reopen as Pyaterochka stores and Perekrestok supermarkets.

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 launches Pyaterochka and Post Bank co-branded Visa card

Moscow, 2017-Aug-08 — /EPR Retail News/ — X5 Retail Group (“X5” or “the Company”), a leading Russian food retailer (LSE: FIVE), announces the launch of a co-branded Visa card by the Pyaterochka retail format and Post Bank (part of VTB Group), offering customers the combined benefits of the Helping Card loyalty programme with enhanced banking services. Clients can apply for the card at any Post Bank branch, with no issuance or service fees.

From 1 August 2017, the cards are available at over 1,500 Post Bank branches in the Northwestern and Central Federal Districts, where more than 5,000 Pyaterochka stores operate. Starting from September, the cards will be issued at the bank’s branches across the entire territory where Pyaterochka operates, including the Volga, Urals and Southern Federal Districts, and certain regions of the Siberian Federal District.

“The Pyaterochka loyalty programme is gaining momentum. In the first four months since its launch, more than 10 million Helping Cards have been activated, and the pace of growth remains high. This co-branded card with Post Bank gives participants of the loyalty programme additional benefits. Card holders will get points for all of their purchases, while earning three times as many points when shopping at Pyaterochka compared to the regular Helping Card. The pilot project in St Petersburg and the Leningrad region showed that Pyaterochka card holders visited our stores almost twice as often than they did before getting the card,” said Pyaterochka CEO Olga Naumova.

“The co-branded card with Pyaterochka is our first project of its kind. I am confident that Pyaterochka’s many customers will value the card and the benefits it offers. In addition to points for purchases, card owners gain a free savings account with monthly accruals at an annual interest rate of up to 7%,” said Grigory Babajanyan, Vice-President, Director for Retail Business Development at Post Bank.

The Pyaterochka loyalty programme gives participants points for any purchase with the Pyaterochka card. Purchases in Pyaterochka will return card owners 3 points for every 20 roubles if the ticket is up to 555 roubles or 4 points for every 20 roubles if the ticket is over 555 roubles. Moreover, card owners get Pyaterochka points (2 points for every 20 roubles) for purchases with the card in any other store, including online. When shopping in Pyaterochka, customers can then use these points to pay for up to 100% of the amount of their purchases at the conversion rate of 10 points per 1 rouble. Participants of the Helping Card loyalty programme can get the new co-branded Pyaterochka card from Post Bank and consolidate points under both programmes.

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 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 partners with Acmero Capital and Marathon Group to develop universal retail centres at passenger transport hubs

Moscow, 2017-Jun-08 — /EPR Retail News/ — X5 Retail Group, a leading Russian food retailer, has made a trilateral partnership agreement with Acmero Capital, a private equity fund, and Marathon Group, an investment company, to develop state-of-the-art universal retail centres at passenger transport hubs (Passenger Service Centres, or PSCs).

The agreement was signed by X5 CEO Igor Shekhterman, Acmero Capital Senior Managing Partner Siman Povarenkin, and Marathon Group President Alexander Vinokurov. As part of the project, the parties expect to open around 600-1,000 PSCs at bus and railway stations, roadside facilities and airports across Russia by the end of 2021. PSCs will offer a selection of state-of-the-art services under one roof, including Pyaterochka grocery stores, pharmacies operated by Marathon Group, catering facilities by Acmero, ticket booths, parcel lockers, ATMs and payment terminals. The mix-and-match service format will be tailored to the needs of each specific location.

A geographic information system (GIS) in use at the Pyaterochka chain since 2014 will help choose the optimal location and the most economically viable format for each PSC.

“In Russia, an average of 50 million people use public transport daily. This passenger traffic is ripe for converting into retail sales. According to X5’s calculations, passengers at bus and railway stations may become important contributors to the traffic of grocery stores and catering facilities. The project is especially beneficial for smaller cities, where bus and railway stations are often big gathering areas, but do not have modern developed retail infrastructure” said Igor Shekhterman, CEO of X5.

“This is an exciting business idea and a retail format that guarantees demand and good development potential. In our highly mobile living environment, transport hubs attract multitudes of people, and the footfall matters as much for pharmacies as it does for stores and food courts. Marathon Group has all the expertise and resources required for a pharmacy operator in a large-scale project like this. In addition, we already have an extensive track record with Х5 Retail Group, so we are very confident about the success of this partnership” said Alexander Vinokurov, President of Marathon Group.

“This is an unjustly forgotten idea that is very much in line with our modern needs. It has the potential to fundamentally change the notions of convenience and travel in Russia. We are looking to breathe new life into old transport stations, which may involve construction of new facilities from scratch, for example, on major roads. This requires large-scale partnerships with transport infrastructure operators, and, importantly, the largest industry players have already shown their openness to cooperation and a proactive approach” said Siman Povarenkin, Senior Managing Partner at Acmero Capital.

Contact:

email: iro@x5.ru

Source: X5 Retail Group

 

X5 expands Perekrestok online service to Moscow’s south-west neighborhoods

Moscow, 2017-Apr-05 — /EPR Retail News/ — X5 Retail Group N.V. (“X5” or “the Company”), a leading Russian food retailer, is expanding the pilot scheme of its Perekrestok online service​, with delivery available to around a million households in south-west Moscow and some neighbouring towns in the Moscow Region from April 4. Other districts of Moscow and towns near Moscow will be able to use the service by the end of 2017.

During the five weeks before the project’s launch in Moscow, around 2,000 employees of X5’s head office placed online orders to test the service. The successful test period allowed options and services available to customers to be tweaked, and errors eliminated.

X5’s online supermarket offers the same prices and product mix as retail stores, including over 13,000 PLUs (other than ready-made foods with very short sell-by dates, spirits and tobacco products). The minimum order for delivery is RUB 2,000. During the pilot stage, all Perekrestok stores in south-west Moscow will offer RUB 300 discount coupons for online orders.

Residents of Moscow’s south-west neighborhoods will be able to get their goods delivered at a convenient time on the next day after ordering. Delivery fees depend on delivery distance and time and the volume of the order, with free delivery for orders over RUB 7,000 or if no preferred delivery time is specified. In future, customers will also be able to collect their orders from the nearest supermarket. Pilot testing of the click-and-collect service is scheduled for Q2 2017.

The order picking and delivery service leverages a specially built hybrid store that combines features of a regular supermarket and a “dark store”. Most popular goods will be supplied from the dark store, which gets direct deliveries from the Company’s distribution centres. More unusual products (such as caviar) will be added from the supermarket’s assortment, so that the delivery warehouse does not have to store Perekrestok’s entire product range.

This arrangement makes Perekrestok’s entire product range available to consumers, and makes for highly efficient and high-quality order completion. Completed orders are packed into specialised transportation containers, with compatible products stored alongside each other.

Orders are delivered by Perekrestok’s special courier service using insulated vans with climate control to ensure Fresh and Ultra Fresh products reach customers safely. The vans are driven by operators with training in goods storage and transportation and excellent customer communication skills. Once the order is delivered, customers will be able to update it, if needed, and pay in cash or by bank card.​​

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 announces development and optimization of its logistics infrastructure in north-west Russia and opens distribution centre in St. Petersburg

St. Petersburg, 2016-Sep-08 — /EPR Retail News/ — X5 Retail Group (“X5” or the “Company”), a leading Russian food retailer (LSE ticker: “FIVE”), announces the development and optimization of its logistics infrastructure in the north-west of Russia and the opening of a distribution centre (DC) in St. Petersburg.

With over 27,000 sq m of space, the St. Petersburg – Yug logistics facility will supply 889 Pyaterochkas in eight regions: St Petersburg plus the Leningrad, Arkhangelsk, Vologda, Novgorod, Murmansk and Pskov regions, as well as the Republic of Karelia. The DC covers a total of 298 cities, towns and villages in the Northwestern Federal District. Featuring five storage zones, each with distinct temperature zone, the facility is designed to accommodate all categories of goods.

St. Petersburg – Yug marks a new milestone in the development of X5’s logistics infrastructure in the north-west of Russia, with the aim of optimising the number of DCs in the Federal District while also increasing capacity and capabilities. This is the first in a series of multi-format, next-generation DCs the Group will use to ensure the availability and freshness of products during Pyaterochka’s rapid expansion, while also cutting logistics costs.

X5 Retail Group invited managers of over 60 suppliers from St Petersburg, the Leningrad, Pskov, Novgorod and Vologda regions to take part in the ceremony. The launch of the new logistics facilities offers them vast opportunities to develop cooperation with X5’s retail chains, materially reducing logistics costs and boosting supplies to X5 stores, including through wider geographic reach.

At its full capacity, St. Petersburg – Yug will be able to process and handle products from over 200 local suppliers. Currently, the share of local supplies in the offering of Pyaterochka stores in the north-west of Russia stands at 27%, while in some categories (like bread and bakery) it reaches as much as 95%.

This advanced logistics facility is X5’s second DC to open in St. Petersburg this year and the sixth one launched across Russia in 2016. Previously, X5 opened five distribution centres with a total area of 164.5 thousand sq m: one each in St Petersburg, the Moscow region and Chelyabinsk, and two in the Republic of Adygea.

The opening of St. Petersburg – Yug has helped create almost 500 additional jobs in the region.

Contact:

Oleg Poletaev
Head of PR
E: pressa@x5.ru
E: oleg.poletaev@x5.ru
T: +7 (495) 662-88-88, ext. 22-209

Source: X5 Retail Group

X5 announces the successful completion of stage 2 of its Forpost distribution centre in Chelyabinsk

Chelyabinsk, 2016-Aug-26 — /EPR Retail News/ — X5 Retail Group N.V. (“X5” or the “Company”), a leading Russian food retailer (LSE ticker: “FIVE”), announces the successful completion of stage 2 of its Forpost distribution centre (DC) in Chelyabinsk. With the new storage zones in operation, the DC’s total area will grow by 3.5x and reach 21,000 sq m.

The launch of stage 2 of the logistics facility, including warehouses for storing dry goods and alcoholic beverages, as well as a banana-ripening room, will boost the efficiency of X5’s supply chains and provide a logistics platform to support rapid growth of the Pyaterochka retail chain in the Urals and Siberia. The new storage zones will also encourage more local sourcing. The share of locally produced items in Pyaterochka stores across the Urals Federal District stands at an average of 30%, and reaches as much as 100% in some categories. The DC will service 642 Pyaterochkas across six regions: Chelyabinsk, Sverdlovsk, Tyumen, Kurgan Regions, Khanty-Mansi Autonomous Area (Surgut), and Bashkortostan.

Together with the Kaskad DC, already operational in Chelyabinsk, stage 2 of the Forpost DC will double the total warehousing capacity for storing dry goods. The enhanced layout design of the new dry goods warehouse seeks to accommodate six-shelf storage units, helping to reduce the number of operations and kilometers driven by warehouse trucks.

The DC can accept up to 100 vehicles daily, servicing stores up to a distance of over 400 km. With 55 warehousing trucks, the DC’s employees can handle up to 450 tonnes of goods per day.

X5 invited managers of over 70 supplier companies from the Chelyabinsk, Sverdlovsk, Tyumen, Kurgan, Orenburg and Perm regions. For suppliers, the launch of stage 2 opens up new opportunities to develop cooperation with X5’s retail chains and boost supplies to X5’s stores.

Source: X5 Retail Group N.V.