© X5 Group
The retailer Perekrestok, part of X5 Retail Group (Russia), opened its 900th supermarket. It is located in Tyumen (Ural region). The design of the store comprises the departments of ready-to-eat and ready-to-go produces; there is a zone for healthy life style merchandise. Half of the supermarkets’ area is reserved for fresh category goods. The assortment includes 17,000 SKU.
Perekrestok has recently considerably expanded its penetration into Ural Federal region; 18 supermarkets were open in June and July.
By the end of June, Perekrestok was running 867 stores located in 146 cities and towns of Russia.
X5 Retail Group is the leading Russian FMCG retailer operating under several brand: Piaterochka (16,096 discounters), Perekrestok (867 supermarkets) and Karussel (62 hypermarket). The goods are consolidated on 42 distribution centers in several regions.
With the staff exceeding 307,000, the company is also one of the largest Russian employer.
Endeavouring to become the leader of digital transformation of the market, the Group uses the services of 1,500 IT and Data specialists.
© X5 Group
Russian retail giant X5 reports a 470% increase in online sales in the space of one year. Total revenue in the year up to April 2020 amounted to €21.3 million, making the X5 Retail Group the number-one online grocery delivery company in Russia, according to Retail News. In April 2020, online sales represented 2% of X5’s turnover in Moscow, the Moscow region and St Petersburg, where online services are available. At the end of the month, X5 was delivering more than 23,000 orders per day, with the number continuing to grow.
X5’s CEO, Igor Shekhterman, said, “During the quarantine designed to combat the spread of the COVID-19 virus in Russia and introduced for the period from March 21 to on May 11, our consumers more than ever need safe ways to get food to feed their households without having to visit a store. In the largest cities where we operate, we at X5 have been able to offer our fellow citizens two convenient ways to meet this demand: first by stocking up via our online supermarket (in Moscow, the Moscow region and St Petersburg), which offers a wide assortment of food, household goods, personal hygiene products, children’s goods and pet supplies; second with express delivery from a nearby Pyaterochka store (176 outlets in Moscow and Kazan), with deliveries completed in 1.5-2 hours based on the assortment of our standard proximity store.”
Since 2017, X5 Retail Group has been investing in expanding infrastructure for its online platforms, including the commissioning of four dark stores, a fleet of 283 delivery trucks, as well as the IT infrastructure and user interfaces for online operations. The group’s plans for 2020 include launching Perekrestok.ru in Nizhny Novgorod in the summer, based on an innovative solution of transforming a former Karusel hypermarket into a dark store. This will be Russia’s first fully fledged online food retail platform boasting a wide product range, including fresh produce, offered in regional markets outside Moscow and St Petersburg. By the end of 2020, X5 plans to scale up its express delivery service while continuing to refine the efficiency of business processes in order to increase market share in this segment and to achieve break-even sooner. In addition, X5 plans to launch express delivery from Perekrestok stores using the new Perekrestok.Bystro mobile app.
Russia’s biggest food retailer, X5 Retail Group, expects revenue growth to rise in the first quarter of 2020 compared with a year earlier due to the coronavirus outbreak, the Interfax news agency reported on Tuesday.
The company reported a 13.2% rise in revenue in 2019 to 1.7 trillion roubles (US $22.5 billion).
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.