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For 2009, hypermarkets reported net retail sales of
RUR 53,546 million, a year-on-year increase of 28%
in RUR terms. As a result, Karusel’s sales amounted
to 19% of X5’s total net retail revenue for 2009.
This was a year of significant changes in our
hypermarket format. Following the integration
of the acquired Karusel chain and conversion of
16 Perekrestok hypermarkets, we re-launched
the Karusel brand in the first quarter of 2009.
X5 made substantial changes to Karusel’s pricing
policy and assortment as part of a fundamental
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repositioning effort aimed at winning consumers
over to the hypermarket format. We believe that
recognition of Karusel’s everything under one roof –
at a low price brand promise is gradually increasing
thanks to promotions and publicity campaigns to
educate customers.
In 2009, hypermarkets performed in line with our
expectations. Overall, LFL sales grew 7% due to
healthy 10% growth in Moscow and a slightly positive
2% LFL increase in the regions.
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In line with trends in other countries, X5 expects the
hypermarket format to increase its penetration of the
Russian market. Our goal is to develop a strong,
differentiated value proposition aimed at typical
Russian families and grow sales densities by
optimising our approach. This includes continued
improvements to food and non-food assortment
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with expansion of private label, own-production,
ready meals and other offerings. We will also
develop Karusel’s loyalty programme, re-launching
it as a personalised card in 2010. We plan to
open 7 to 10 hypermarket stores in 2010, and will
capitalise on favourable rents and availability of
retail space to secure optimal locations.
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