The administration of X5 Group, one of the largest food retailers in Russia, has urged its suppliers to decrease prices by 10% by mid-March. The reason for the request is the growth in the rouble’s exchange rate compared to the dollar and euro. Currently, some 6,000 suppliers cooperate with the retailer, some of whom have reacted positively to the appeal. X5 Group stated that it
“will possibly revise the terms of cooperation with suppliers who do not reply.”
In 2016, the group’s sales grew by 27.5 %, mainly thanks to price drops and promotional actions.