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For 2009, supermarkets reported net retail sales
of RUR 73,188 million, a year-on-year rise of 9%
in RUR terms. As a result, Perekrestok’s sales
amounted to 27% of X5’s total net retail revenue for
the year.
Supermarkets’ performance was affected
by trading down by consumers, especially
in the regions. Overall, like-for-like sales were flat
as 4% basket growth was offset by an equivalent
decline in customer traffic. Stores in Moscow and
St. Petersburg delivered like-for-like sales growth
in the low single digits, but LFL performance
in the regions declined 13%.
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Despite the economic crisis, there was good news
as well: X5’s supermarkets gained market share
from weakened competitors by strengthening our
appeals within Perekrestok’s target customer base.
In December 2009 X5 completed the acquisition
of Paterson supermarket chain, reinforcing our
number one position in supermarkets. Paterson
provides high quality locations in key geographic
markets with strong demographics for this format.
Approximately 57 stores will be converted to
Perekrestok by the end of first half 2010.
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Our main objective in 2010 is to gain market share
and outperform supermarket competitors while
positioning the format to benefit from a recovery
in consumer spending. We expect to drive
significant growth in sales per square metre at
acquired Paterson stores after we convert these to
Perekrestok. X5 also plans to open approximately
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15 stores organically. We will continue to build
Perekrestok’s brand on the freshest foods
and outstanding service, while maintaining
price leadership with the best promotions
of any supermarket. We will further develop
merchandising and private label, and upgrade our
loyalty programme.
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