X5 Retail Group continues to grow

X5 Retail Group announced preliminary results for the first half of 2015. In January-June, retail sales increased by 27.3% compared to the same period of 2014 and amounted to 380.68 billion rubles. Sales of stores “Pyaterochka” increased by 35% up to 274.63 billion rubles, sales of stores “Perekrestok” – by 11.3% – up to 3 billion rubles, sales of stores “Karusel” – by 11.5%, tup o 37.3 billion rubles, sales of  stores “Express”-  by 17.8%, up to 5.68 billion rubles.

During 6 months, the average bill rose by 11.3% up to 373.9 rubles. The number of purchases increased by 14.3%, amounting to 1.16 billion items.

From the beginning of the year, X5 Retail Group opened 488 new stores (235 stores in the first half of the last year). In the end of June 2015, the company operated 5,971 stores (5,273 supermarkets “Pyaterochka”, 438 supermarkets “Perekrestok” and 83 hypermarkets “Karusel” and 177 stores “Express”).

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X5 Retail Group’s revenue increased by 18.6%

In 2014, one of the largest retailers in Russia, X5 Retail Group, increased its revenue by 18.6% up to 631.93$ billion rubles. In the fourth quarter of the last year, revenue growth was 20.8%. According to the company report, in October-December X5 retail networks “Pyaterochka”, “Karusel”, “Perekrestok”, “Express” and online retailer E5.RU gained 181.23 billion rubles.

“Pyaterochka” showed the highest revenue growth, it increased by a quarter – from 348.39 billion rubles up to 435.82 billion rubles. At the same time, in chains “Perekrestok” and “Karusel” the outflow of customers traffic could be seen.

The worst was the result of online retailer E5.RU – its revenue for the year fell by more than a third, from 1.431 billion rubles to 950 million rubles. And as X5 could not find a partner for this project or sell it, they had to close it in January 2015.

In 2014, the amount of an average receipt in X5 retail chains increased by 7.7% – from 317.6 rubles to 342.2 rubles. The number of purchases increased by 10.2% – up to 2.114 billion purchases.

Earlier, the retailer “Magnit” reported that in 2014 its ruble revenues increased by 31.61% and reached the level of 762.72 billion rubles.

X5 Retail Group operates several retail chains: discounter “Pyaterochka”, supermarkets  “Perekrestok”, hypermarkets “Karusel”, stores “Express” (“Perekrestok Express” and “Kopeika”).

On December 31, 2014 there were 5,483 stores, including 4,789 stores “Pyaterochka”, 403 supermarkets “Perekrestok”, 82 hypermarkets “Karusel” and 209 stores “Express”. In 2014, the number of discounters “Pyaterochka” increased by 907 stores (+ 23.4%), the number of supermarkets “Perekrestok” has increased by 13 stores (+ 3.3%) and the number of stores “Express” – by 20 stores (10,6%). In 2014, the X5 closed 46 stores “Pyaterochka”, 22 stores “Perekrestok”, two stores “Karusel” and 45 stores “Express”, the results of which were not  as good as it had been expected. Also, the company sold 12 supermarkets “Perekrestok” in Ukraine.

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X5 Retail Group: centralizing the managment was a mistake

X5 Retail Group said that centralizing the management of all the formats was a mistake.

Now, the company has finished the separation of management functions of  “Karusel”, “Perekrestok” and “Pyaterochka.”

According to newspaper “Vedomosti”, all X5 Retail Group supermarkets will share legal, financial, and security departments, but each format will have its own logistics and commercial departments.

Source: www.retailer.ru

130 new stores for Verny

Verny, a grocery retail chain of soft discounters, will have approximately 130 new outlets in 2013. In Q4 2012 the company launched 33 stores in Moscow, the Moscow Province, St. Petersburg and the Leningrad Province. The first Verny store is due to open in Yekaterinburg in the summer of 2013. Further launches will take place in six regions in which the company has not previously operated. In addition, Verny is preparing to open two distribution centres in Moscow and St. Petersburg.
As Retail Update Russia reported on a previous occasion, the Verny brand is developed by the former managers of the X5 Retail Group, along with Andrey Rogachev, the founder of the Pyaterochka and Karusel grocery networks (both brands are now owned by X5). The first outlets began operations in October 2012.

Source: www.russiaretail.com