X5 Plans to Retain Karusel Brand
11 Aug 2008
Amsterdam, 11 August 2008 - X5 Retail Group N.V. (“X5” or the “Company”), Russia's
largest retailer in terms of sales (LSE ticker: “FIVE”), announces today that is has decided to
retain the Karusel brand and to use it for all of the Company’s hypermarkets.
As it was announced by X5 on 25 June 2008, in addition to purchasing the entire issued share
capital in Formata Holding B.V, the owner of the Karusel hypermarket chain, the Company has
also acquired certain intellectual property, which originally was not part of the Call Option
Agreement, including Karusel brand.
X5 has thoroughly reviewed its initial approach towards rebranding of the acquired stores,
analysed brand awareness and customer loyalty to the Karusel brand. Based on the results of
this analysis, X5 has decided to retain the brand and to use it for all of the Company’s
hypermarkets. All new hypermarkets will be opened under the Karusel brand, while
rebranding of existing stores will be done gradually.
The decision to retain the brand will enable X5 to optimise the Karusel integration process,
while a single brand for all hypermarkets means more efficiency in terms of operating the
stores and clearer value proposition for the customers. The Company is considering using the
Mercado brand for its future projects.
X5 Retail Group plans to provide an update on the progress of Karusel’s integration and the
integration plan along with the announcement of the Company’s financial results for the first
half of 2008, which is preliminarily scheduled for the end of August. Simultaneously X5 will
provide 2008 guidance for the joint Company.
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