As Russia’s largest retailer, X5 is uniquely positioned to capitalise on consumer growth trends. Our goal is to be the number one choice for customers and reinforce X5’s leadership in the Russian retail market. With our three retail formats – discounters, supermarkets and hypermarkets – we have stores for every lifestyle and family budget.
Our “Close to the Customer” policy aims to ensure that each of our formats leads its market segment by offering the right products at the most attractive prices. We continue to invest in our value propositions, quality and service to build customer loyalty while differentiating the shopping experience through Private Label read more, Retail Innovation read moreand other initiatives.
X5 grew net sales by 24% in RUR terms in 2010, or 22% excluding the initial contribution of the acquired Kopeyka retail chain. Performance was driven by new store expansion and a LFL sales increase of 7% in RUR terms, on a 3% increase in customer traffic and 4% increase in average purchase size.
Discounters again delivered strong performance in terms of sales growth, LFL sales and sales per sq. m., outperforming the competition, winning customers and strengthening market positions in key regions as the chain for ordinary Russians. At the end of 2010 X5 acquired the Kopeyka discounter chain to become the clear leader in the segment. In 2011 we plan to accelerate growth in discounters and focus on integration and rebranding of Kopeyka. read more
Supermarkets improved significantly towards the end of the year as consumer spending recovered and shoppers began trading up. After a tough macro environment in first half 2010, price promotions and assortment changes at supermarkets and the successful integration of Paterson combined with a strengthening Russian economy to drive positive LFL sales increases in the third and fourth quarters. In 2011, our goal is to sustain this recovery and grow sales and market share through investments in new stores and older store remodeling. read more
Hypermarkets saw improving LFL sales in Moscow and the regions but overall 2010 performance was flat year-on-year due to sharp declines in the intensely competitive St. Petersburg market. We are executing performance improvement plans to strengthen management of non-food assortment, which is critical to success in the hypermarket business. X5 will continue to open new stores selectively in 2011 to develop hypermarkets’ potential in Russia in line with trends in other countries. read more