X5 Retail Group is committed to bettering the lives of ordinary Russians in the regions and communities in which we operate. We do this by providing investment and job opportunities, ensuring affordable products for all family budgets, and actively participating in social programmes and humanitarian projects. In addition to demonstrating X5’s commitment to good corporate citizenship, our actions advance X5’s overall goal of building customer loyalty.
ACCESS TO AFFORDABLE PRODUCTS Product affordability is crucial for social development in our country. X5’s price leadership played a more important role than ever this year as life got harder for ordinary Russians. Pyaterochka’s new brand promise – lowest price in the market on 100% of assortment – was the right response at the right time for consumers weathering the effects of the economic crisis, and it led to a record year for discounters. For the Company as a whole, we kept the rise in average prices in X5’s stores to below Russian inflation levels throughout the year.
X5 cares about product affordability especially for socially vulnerable sections of the population. We offer special discounts and other benefits to Russian war veterans, pensioners and disabled persons. At Karusel hypermarkets and Perekrestok supermarkets, they receive an additional 5% discount on their purchases during our “Care Time” hours from 9 a.m. to 1 p.m. every weekday except holidays.
In December 2008, X5 opened its first store designed to accommodate the special needs of physically challenged customers. The store, a Pyaterochka located in St. Petersburg, is considered to operate in line with global best practices according to an evaluation by the All-Russian Society of the Disabled.
EDUCATION AND HEALTH INITIATIVES This year was the fifth anniversary of X5’s education initiative, “Perekrestok Goes to School!” The programme has expanded significantly since it was launched together with the Moscow Department of Education and Moscow City Government. In 2009, 199 Perekrestok stores in more than 40 Russian cities participated in the programme, which donated over 4,000 computers and other IT equipment to 659 schools.
X5 also supports the Liniya Zhizni (Lifeline) fund, which works to reduce child deaths from serious, treatable illnesses by helping to modernise the country’s health care system. Perekrestok’s customers provide their generous support to Liniya Zhizni by making contributions in special collection boxes displayed in our stores. Our customers’ donations raised over RUR 5 million in 2009.
SUPPORT FOR RUSSIAN FOOTBALL X5 is the general partner of the Russian Football Union and an official partner of the Russian national football team. The Company provides financial support for Russian football as a way to promote active, healthy lifestyles. This includes funding the construction of community football fields and sports programmes that provide education and training for talented young athletes.