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X5 Enters Siberian Federal District

August 12, 2016. TAG: Retail Trade

X5 Retail Group, a leading Russian food retailer, announces the launch of its operations in the Siberian Federal District and the creation of Pyaterochka’s Siberian Division.

Between 5 and 12 August, five Pyaterochkas were opened in Novosibirsk. The stores, with a total area of 2,890 sq m, are fully in line with the format’s new concept launched in October 2013. To date, the chain has upgraded and rebranded over 6,400 stores (more than 89% of the total) in 54 regions.

At present, Pyaterochka partners with more than 50 Siberian producers. Over 40 producers are located in the Siberian Federal District, with 17 of them in the Novosibirsk Region. Local producers account for about 17% of store sales. Their bakery, frozen products, eggs and chilled poultry categories consist of nearly 100% locally produced goods. Going forward, every fifth product in the Siberian Pyaterochkas will be of local origin. Partners of X5 will also have an opportunity to supply their goods to neighbouring regions. The products made in Siberia are marked with a special eye stopper.

The Novosibirsk Pyaterochkas will be supplied by a distribution centre (DC) in the town of Ob, Novosibirsk Region. A logistics services contract has been signed with HAVI Logistics. In addition, the Novosibirsk Pyaterochkas will receive some goods directly from local producers.

By the end of 2016, Pyaterochka plans to open over 60 stores in Novosibirsk, Kemerovo, Novokuznetsk and Omsk, thus creating 760+ additional jobs in the stores and X5's regional office. Over the next two years, Pyaterochka plans to open over 150 stores in the Altai Territory, as well as in Novosibirsk, Kemerovo, Omsk and Tomsk Regions.

The chain’s DC, with a total area of 35,000 sq m and a headcount of 250 employees, will start operations in Novosibirsk by the end of 2017. The DC, with capacity to service more than 500 stores, will feature up to 31,000 pallet positions, accept up to 260 and release up to 350 vehicles daily.

By the end of 2018, Pyaterochka’s Siberian Division plans to open DCs in Krasnoyarsk and Omsk.

X5 Retail Group

X5 Retail Group is the leading food retailer in Russia. X5 shares are listed on London Stock Echange (LSE) in the form of Global Depositary Receipts. The Company operates several retail formats, including the chain of conveniently located proximity stores under the Pyaterochka brand, the supermarket chain under the Perekrestok brand, the hypermarket chain under the Karusel brand and Express convenience stores.