X5 consistently delivers results and this year is no exception. We met our 2010 growth outlook with a net retail sales increase of 24% in ruble terms. The Company ended the year with USD 11.3 billion in consolidated net sales, added nearly 1,100 stores and extended its number one position far beyond the nearest competitor.
We have kept our focus on the customer in good times and bad. As the economy picked up in 2010, our multi-format approach clearly showed its value. X5 powered to a strong finish as consumer confidence finally rebounded and customers began spending again towards year-end thanks to a strengthening Russian economy.
This year we ramped up organic growth with record new store openings. Net of the Kopeyka acquisition, we added 437 stores, exceeding the Company's plan while remaining below our CapEx limit.
Acquisitions added to our growth potential. We successfully integrated Paterson's 75 stores acquired in December 2009, and delivered on our objective for a substantial increase in sales densities. We capped the year by acquiring Kopeyka, giving X5 the number one position in discounters and enhancing our platform for growth. The deal gave us over 650 discounter stores, establishing X5 as the number one leader in our best performing format and significantly increasing our geographic footprint in Moscow and Moscow region.
X5 thus begins 2011 in a prime position to strengthen its leadership in Russian retail. The Company has an ambitious, opportunity-rich agenda and 2011 will be a critical year for execution. As the management team focuses on making X5 an even stronger and more efficient business, I want to emphasise our key priorities for success.
Staying close to our customers is essential to everything we do. The Company has a proven strategy to be the best competitor in the marketplace. With a recovery in consumer spending supported by an economic upturn, we are focused on strengthening performance across all our formats. Our multi-format approach to customer segmentation has served us well, offering stores, assortment and value for every consumer lifestyle and budget. We will continue to win customers and grow sales by ensuring a quality shopping experience at affordable prices.
We will add a record number of stores to power organic growth. We are stepping up new store openings, particularly discounters, which is a great format for Russian consumers with low to average incomes. Execution of X5's store opening programme has always been high quality, and our team will continue to manage the economics and operational planning of our expansion strategy to get the best locations and ramp up sales quickly.
X5 is fast-tracking the Kopeyka integration plan. Following a thorough analysis, X5 set an ambitious goal to execute the integration plan in one year instead of two. This will position the Company to seize opportunities for growing sales densities and improving efficiency to get the synergies and generate value for our shareholders. Customers will also benefit as we rebrand Kopeyka to deliver even better assortment and prices.
We will further focus our efforts on supply chain efficiency. A major focus of X5's strategic efficiency programme has been the creation of a fully integrated supply chain and IT systems platform. Successful implementation of SAP and higher centralisation of distribution increase X5's operational efficiency potential, including greater focus on productivity gains going forward.
Commercial development is an essential sales driver. We will continue improving assortment with expansion of sourcing from local producers and an increased share of private label and better non-food offerings.
Tight financial discipline remains a key priority. We have clear goals for disciplined growth through execution of our CapEx plan, cost control, cash generation and working capital management.
Regional expansion is becoming more important. X5 is the leader in Moscow, St. Petersburg and other large cities with higher population density and incomes. We will continue to strengthen our position in our largest markets, while also building out our store presence to leverage X5's regional logistics infrastructure and win customers in areas under-served by the competition.
We build X5's team in a way that creates competitive advantages. The Company's strategic focus on HR management gives X5 a major competitive advantage. We hire the best industry professionals, our team is cross-functional and this makes X5's organisation the strongest in the retail sector.
I am enthusiastic about the opportunity to lead X5's management team as we pursue X5's next phase of profitable growth. Russia is one of the world's most exciting consumer markets, and X5's strategy provides excellent potential upside for shareholder returns in the years to come.
Andrei Gusev