Russia: X5 is going to open the first hard discount stores
Updated: Oct 6, 2020
Russian listed X5 Retail Group is developing a hard discounter store and plans to launch 3-4 pilot stores by the end of 2020. “We believe that this format has good prospects given the current economic situation, in which consumer income continues to decline, and the price is and will remain a key factor in making a purchase decision,” said Igor Shekhterman, X5 Retail Group CEO. This hard discounter will operate next to X5's 4,789 proximity Pyaterocha store concept. In 2010 X5 bought and integrated Russian soft discounter Kopeyka for 51.5 billion rouble (US$660mio) with 660 stores into the Pyaterocha concept. The CEO of the company also noted that in addition to the flagships, the Perekrestok and Pyaterochka chains, the group will continue to actively develop the Perekrestok Vprok online hypermarket, which today operates on the basis of 5 darkstores and fulfills more than 12,000 orders a day. Express delivery will be developed both on the basis of the main formats, from the stores of the Pyaterochka and Perekrestok chains, and under the Okolo brand. As X5 is the online delivery market leader in the first half of this year, the revenues in the online segment exceeded 8 billion rubles (US$100 mio).
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