X5 Retail Group

Walmart plans its Russian return

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When Walmart left Russia empty-handed in December 2010 – 8 years after it first began exploring the market and 3 years after it had opened a Moscow office – it appeared that the world’s largest retailer had finally met an emerging market it could not crack.

Today the company has already laid the initial groundwork for its return, hiring one of the leading figures in Russian retail to help manage its emerging markets division.

Lev Khasis, former chief executive of X5 Retail Group, Russia’s biggest retailer by sales, has started as a senior vice-president at Walmart, where he will be focusing on the companies’ existing emerging market operations, in countries including Brazil, India and China.

Mr Khasis stressed in an interview that his appointment did not indicate Walmart would immediately rush back into Russia, but said the company would continue to look at the market carefully, waiting for the right time and the right acquisition.

Source: www.freshplaza.com

X5 Retail Group is suffering from the unstable economy

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X5 Retail Group has suffered more than any other retailer from the customer attrition,which was registered in Q3 2011. Moreover the company is expecting further lowering of LFL sales in Q4 2011. X5 Retail Group has lowered the forecast of growth in revenues for 2011: instead of 40% the revenues are expected to grow by 35%. After the company had announced this news its capitalization dropped by 15%.

X5 Retail Group blames the Russians’ purchasing power which has decreased due to the unstable economic situation in Russia and in the world – a trend which is observed on the Russian food retail market.

Source: www.retailer.ru

Sales on the rise at X5 Group

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Despite a strong third-quarter result, the Russian retailer cuts it’s full-year sales forecast, Russian retail leader X5 has announced growth in its net sales for the third quarter of the year, with consolidated net retail sales increasing 32 per cent year-on-year to R105bn (€2.4bn).

Organic sales increased 18 per cent on the same quarter of 2010, while like-for-like sales grew 4 per cent.

During the three-month period, X5 opened 102 new stores in the country, including 114 soft discounters, six supermarkets, two hypermarkets and 11 convenience outlets, while it closed 31 Kopeyka units.

For the first nine months of the year, consolidated net retail sales jumped 40 per cent on the same period a year before to R3.30bn (€6.9bn).

Despite these positive numbers, however, X5 revealed that it was cutting its full-year sales forecast from 40 per cent to 35 per cent, due to the uncertain economic environment and the rebranding of its Kopeyka stores.

“Russian consumers have cut back on spending amid unstable economic conditions in Russia and worldwide, a trend that has been observed on the Russian food retail market,” the group noted.

Source: www.fruitnet.com

Russia: X5 Retail appoints supermarket format director

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X5 Retail Group N.V., a Russia-based retailer, has appointed Igor Sotnikov as the company’s new supermarket format director.

Having joined the Company in 2001, Mr Sotnikov spent almost 10 years mostly in supermarket operations. He succeeds Ekaterina Stolypina, who is leaving X5 for personal reasons.

Andrei Gusev, CEO of X5 Retail Group, commented: “We are grateful to Ekaterina for her valuable contribution in managing supermarkets and hypermarkets. Our strategy is to manage these two formats separately. As an experienced retail executive Igor is ideally placed to further develop our winning supermarket format. X5 is in the process of recruiting senior talent to take over the management of hypermarkets and expects to complete this process in the nearest future.”

Mr Sotnikov has extensive managerial experience with X5. Igor had been running Perekrestok operations since 2005. From 2007 he headed logistics of X5. Igor served as CEO of X5 Ukraine for several years.

Source: www.freshplaza.com

X5 to open more than 500 stores in 2011

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X5 Retail Group N.V., one of Russia’s largest retailers is planning to open about 540 new stores in 2011. Within the development strategy the company will focus on towns with more than 10,000 people. The majority of new stores will be opened organically, but the development package will also include acquisition deals. X5 is interested in all the chains operating in the focus regions and they keep in touch regarding potential takeovers.

Source: www.retail.ru

X5 Retail Group introduces new convenience store concept

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The new outlets have a smaller sales area, ranging from 70 to 200 square metres and the product range includes ready meals, convenience food and fresh bakery products. X5 plans to introduce a coffee bar and Wi-Fi in the future. The retailer currently operates four company-owned stores in Moscow but plans to expand the network through franchising.

Source: en.retail.ru

X5 Revenue to Grow in Q2 2011

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X5 Retail Group, Russia’s largest supermarket chain by revenue, reported sales growth of 41%  in Q2 on consumer demand and after acquiring the Kopeika food store chain.

Net retail sales climbed to 112 billion rubles ($4 billion) from 79.8 billion rubles a year earlier, X5 said Friday in a statement.

Growth rates slowed in Q2 from the first three months of the year as real incomes declined, which is expected to continue in Q3, chief executive Andrei Gusev said in the statement. Demand will probably rebound in the last three months, he said.

Source: www.freshplaza.com

Russian Retailers Ready for Further Expansion

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In March 2011 Russia’s 90 largest retail chains added 49 shops to the total number, which has grown by 111 since the beginning of the year. Discounter format is still leading in the market, but  hypermarkets are also gathering pace. In Q1 2011 Magnit opened 222 shops, among which 211 discounters and 11 hypermarkets. Enhancement of competition within the branch will contribute to further consolidation, and in the 2nd HY 2011there will be more new shops opened.

At the same time X5 Retail Group is less ambitious and only planning to open 500 discounters, up to 25 supermarkets and 10 hypermarkets. The company is also working on new formats. During January – March X5 opened 80 new discounters and 2 supermarkets.

Source: www.retail.ru

Federal Retail Chains Dominate the Market

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Aggressive expansion policy of the largest retailers has reached its aim: 5 largest chains account for 70% of retail areas augmentation in 2010.

The INFOLine analytical agency reports, that 2010 Russia’s ninety largest retail chains added ca. 1m sq.m of new sales areas, of which 55% fell on two largest market players – Magnit and X5 Retail Group. 2009 they had a 48.2% share in the total volume of newly opened sales areas. Top five food retailers, including Auchan, Metro Cash & Carry and Okey, accounted for 72.3% of the areas augmentation). The rest 27.7% were shared among 47 other retail chains.

Source: www.fruitnews.ru

Facts and Figures about Russian Retail Market 2011

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2011 the Finnish retail chain Prisma is planning to open a new hypermarket and two supermarkets in St. Petersburg. The premium-class supermarket chain Globus Gourmet will open four stores in Moscow and St. Petersburg, with the investment volume reaching RUB 600m. Russia’s retail market leaders – X5 Retail Group and Magnit – accounted for 80% of all the new stores opened by the largest market players in Q1 2011. Dixy’s net revenues in 2010 amounted to RUB 257.7m. The sales of Lenta, retail chain from St. Petersburg , grew by 35% in Q1 2011.

Source: www.retailer.ru