1.1.5 Our business model
X5 Retail Group is Russia’s largest food retailer, with three national food retail formats: Pyaterochka, Perekrestok and Karusel. While each of the formats functions largely autonomously, the Corporate Centre centralises certain activities when coordination and pooling resources improves efficiency across the Company.
Our brands
Each of our brands offers a unique CVP and targets key parts of the Russian consumer population. This multifaceted strategy enables X5 Retail Group to capture a significant portion of the growth that is forecast for each of the three largest segments of Russia’s food retail market.
| As of 31 December 2017 / In 2017 | PyaterochkaPyaterochka is our largest retail format, with 11,225 proximity stores serving customers in convenient locations in around 2,500 cities and towns across Russia. The Pyaterochka CVP appeals to a wide swath of the Russian population, with a large assortment of fresh goods and a recently launched loyalty programme that offers personalised promos based on each individual customer’s shopping behaviour. | PerekrestokThe Perekrestok supermarket format is Russia’s oldest and largest. Now undergoing a large-scale refurbishment and expansion programme, Perekrestok offers a wide assortment of high-quality goods, including a growing range of exclusive and private-label lines. | KaruselKarusel focusses on compact hypermarkets located within city limits that appeal to rational shoppers and customers looking to stock up their household in one shopping trip. With a significant offering of in-house production, private-label and non-food goods, every Karusel aims to meet a wide array of customer needs. |
Number of stores | 11,225 | 638 | 93 |
Selling spacethousand sq m | 4,427 | 637 | 385 |
Net retail salesRUB bln | 1,001 | 187 | 89 |
Percentage of X5’s net retail sales | 77.8% | 14.5% | 6.9% |
Potential market growth of segmentRUB trn | Proximity/discounters | Supermarkets | Hypermarkets |
Source: X5 data, Rosstat, Infoline