Slowdown in Pyaterochka refurbishment process

The X5 Retail Group, a prominent grocery retailer, has announced that the total number of Pyaterochkadiscounters to be refurbished this year will be less than previously planned. This is because the project has proven to be more challenging than the company had estimated.

The retailer had planned to revamp 1,100 stores in 2014 and to complete the refurbishment of the entire chain by the end of 2015. The average cost of reformatting one establishment is $360,000 (€259,000). In October 2013 X5 planned to spend between $160m and $440m (€115-317m) on this over 18 months.

At the end of last year, X5 was operating 4,544 stores in total. These included 3,822 Pyaterochka discounters, 390 Perekrestok supermarkets, 83 Karusel hypermarkets, and 189 differently branded express stores.

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