Food retail

X5 Opens New Logistics Facility in Tatarstan

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X5 Retail Group, a leading Russian food retailer that operates the Pyaterochka, Perekrestok, and Karusel retail chains, announces the expansion of its logistics infrastructure in the Volga region and the opening of a Pyaterochka distribution centre (DC) in the Republic of Tatarstan.

With a total floor area of 18,000 sq m, the Yelabuga DC features four storage zones for fresh products, fruits and vegetables, dry goods and alcoholic beverages. Each zone has a specific temperature band that is best suited to keep relevant products fresh.

Once it reaches design capacity, the new DC will supply food products to 600 Pyaterochka stores in 300 localities across the Republics of Tatarstan and Udmurtia. The logistics facility is expected to process 1,500 tonnes of goods per day, with its seamless operation supported by more than 250 employees and some 100 vehicles. Overall, Pyaterochka has generated over 10,700 jobs in the Republic of Tatarstan.

The launch of the new DC will enable Volga region food producers not only to reduce their transportation costs, but also to expand the geography of their sales. At full capacity, the logistics facility will be able to handle about 500 suppliers, further increasing the share of Tatarstan producers in the chain’s regional sales beyond the current level of over 30%. Today, Pyaterochka retail chain works with 88 local suppliers, of which 18 were added to the supplier list in 2019.

The Yelabuga DC is the second advanced logistics facility opened by Pyaterochka in the Republic of Tatarstan. In November 2019, the Kazan DC was opened in Zelenodolsk, bringing the total floor area of Pyaterochka’s warehouse facilities in the region to over 57,000 sq m. Today, the Republic of Tatarstan has more than 700 Pyaterochkas, including 24 stores that opened this year.

The opening ceremony was attended by Alexey Pesoshin, Prime Minister of the Republic of Tatarstan, Sergei Goncharov, General Director of Pyaterochka, and executives of suppliers from the Volga Federal District invited by X5.

www.x5.ru/en

Metro IPO plans in doubt due to Ukraine crisis

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The stock valuation of German hypermarket chain Metro has taken a heavy hit over the past week, and the retailer’s plans to launch an initial-public-offering of its Russian unit has been thrown into doubt due to the fallout of the current situation in Ukraine.

Over the weekend, Metro shares fell by over 5% in early trading on the German mid-cap stock exchange to €28.50.

Metro had hoped to raise around €1 billion by selling 25% of its stake in its Russia cash-and-carry unit in a London listing but due to Russia’s involvement in the political chaos surrounding Ukraine, details of the group’s plans aren’t currently clear.

A Metro spokesperson said it would “monitor the situation in Ukraine closely” because market conditions need to be favourable in order to launch an IPO.

Metro planned to use the proceeds from the IPO to expand its cash-and-carry business in Russia, its most profitable unit and the country’s fourth-biggest retailer behind X5, Magnit (MGNTq.L) and French chain Auchan.

Metro operates 72 stores in Russia and achieved sales of 183 billion roubles in 2013.

www.freshplaza.com

11% increase in revenue for Metro in 2013

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There was an 11.3% year-on-year increase in the Russian revenues of Metro Cash & Carry, the grocery retail division of the German Metro Group, to RUB 183.2bn (€3.68bn), in 2013. At the same time, the company’s like-for-like sales grew by 7.7%. The company disclosed its Russian financial results for the first time because it is considering an IPO for the Russian Metro Cash & Carry business. The Metro Group is planning to float 25% on the London Stock Exchange (LSE).

In addition, the company’s EBITDA rentability figure has reached 12.4%, which is a record among large grocery retailers in the country.

According to Metro’s quarterly report, at the end of 2013 it was operating 73 Metro Cash & Carry hypermarkets in Russia.

www.ceeretail.com

Magnit reported slower sales growth

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OAO Magnit (MGNT), Russia’s largest retailer, reported slower sales growth in December as consumer-spending weakened, sending the shares down the most in about 18 months.

Revenue rose almost 23 percent from a year earlier to 63.6 billion rubles ($1.9 billion), less than November’s 29 percent growth, Krasnodar, Russia-based Magnit said in a statement today. Convenience stores led the slowdown as consumers switched to hypermarkets and open markets for New Year shopping.

Magnit fell as much as 6 percent in London trading, the steepest drop since July 6, 2012. The stock was down 4.9 percent to $60.35 at 8:30 a.m. in the U.K. capital.

Magnit’s slowdown may cause investors to revise growth prospects for the entire Russian retail sector, said Natalia Kolupaeva, an analyst at ZAO Raiffeisenbank in Moscow.

Russian gross domestic product grew 1.2 percent in the third quarter, missing estimates. Economic growth has slowed every quarter since President Vladimir Putin won a third Kremlin term in March 2012. Russian retail sales grew 4.5 percent in November, according to Federal Statistics Service.

www.bloomberg.com

Magnit sets up transport arm in Hungary

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Russia’s biggest food retailer, Magnit, will set up a transport company in eastern Hungary creating around 1,500 jobs, Hungarian foreign affairs state secretary Peter Szijjarto was quoted as saying on Friday.

National news agency MTI reported Szijjarto as saying that Magnit’s road haulage arm will have a fleet of 1,000 trucks, which will transport foodstuff from European Union member states including Hungary to the retailer’s shops in Russia.

Magnit, earlier this year, overtook rival X5 as Russia’s No.1 grocery chain by revenue.

www.freshplaza.com

Land considers business in Altay Teritory

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The premium grocery retailer Land is negotiating on the lease of premises in the Plaza shopping centre in Barnaul. The outlet would operate as a Land franchise store. The retailer claims that it has signed a franchise agreement with a Barnaul partner.

Today, Land operates nine stores in St. Petersburg, and another, in Narodnogo Opolchenia Avenue in the city, has been opened on 12 December. The Barnaul launch will represent a totally new regional market for the network.

In 2012 the company’s annual revenues came to RUB 2.5bn (€55m). As PMR reported in November, in 2013 the company expects to boost its revenues by 28-30% year on year, to RUB 3.2bn (€71m), excluding VAT.

www.ceeretail.com

November sales rose by 28.7% for Russian retailer Magnit

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Russia’s biggest food retailer Magnit said on Tuesday its sales rose by 28.7 percent in November, year-on-year, to 50.2 billion roubles ($1.5 billion) after a rise of 27 percent in the previous month.

Magnit, which this year overtook rival X5 as Russia’s No.1 grocery chain by revenue, said the November result brought sales for the first 11 months of the year to 516 billion roubles, up 30 percent on the year.

The company opened 181 stores last month, bringing its total to 7,920. Fast expansion will help it grow revenues by 28-29 percent this year, while next year’s growth is likely to slow to 25-27 percent, the company has said.

www.freshplaza.com

Magnit opens new distribution centre

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Magnit, Russia’s largest retailer by sales, has said that it will open a new distribution centre in Yaroslavl.

Located to the north-east of Moscow, Yaroslavl is a transportation hub connected to the rest of Russia via national and regional roads, railways and waterways.

Magnit’s new distribution facility is about 58,904 square metres in size. The company said that the new facility would “improve the quality of service in central regions”.

Magnit has focused on expanding its sales in Russia through a programme of aggressive store openings. In the first nine months of this year, to the end of September, Magnit increased its selling space by over 25%, opening 762 stores throughout Russia. As a result of this strategy, the company expects full-year sales to climb by 28-29%.

The group operates 20 distribution centres with a total capacity of around 542,031 square metres.

www.freshplaza.com

Dixy receives international recognition

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Russian FMCG-retailer Dixy has been declared as «The Best European retail network» and awarded Conecta Premios during the international trade forum «Fruit Attraction» held in Madrid.

As the company says, Dixy has been implementing the direct import of vegetables and fruit since 2010. Right now, 120 companies from 23 countries are suppliers of Dixy. The share of these categories in the company’s net turnover is 13%. Bananas, apples, and tomatoes are all-seasons sales leaders in quantitative and monetary terms.

«Fruit and vegetables are strategically important products in «next to home» stores, but most of fruit and vegetables simply don’t grow in Russia due to its’ climate. That’s why we see a bigger potential in cooperating with European partners», – said Marat Magkeyev, the vice president of logistics and international communication department.

The winners of Conecta Premios among retail networks were chosen by voting of producing companies and suppliers. Grupo El Árbol (“Best quality and freshness”), Carrefour (“Innovative idea”), NaturaSí (“Stable project of ecological supermarket”) and Grupo El Corte Inglés (“Cooperation with supplier”) also became the winners this year.

www.retailer.ru

“Globus Gourmet” to Conquer European Capitals

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Premium-class food retailer Globus Gourmet has changed its expansion course in the most dramatic way. Instead of opening 15 new supermarkets in Russian cities with population exceeding 1 mln, the company decided to open 7 supermarkets in European capitals. The start of the new expansion programme, is supposed to be in London, where the company is planning to open a supermarket with total area 1.500 sq m and investment volume up to £ 4 mln. European expansion will cost at least USD 40 mln. European base rents are reported to be lower than in Moscow, whereas the consumer traffic is a little bit higher.

Source: www.retail.ru