X5 Retail Group is committed to bettering the lives of our employees, our customers and our neighbours in the regions and communities in which we operate. Strong corporate citizenship is fundamental to our success, helping us attract and cultivate talented staff and earn customer loyalty. We invest substantial time and money in community improvement to create a better, more healthful lifestyle for those around us.
Access to Affordable Products
Ensuring that our products are affordable for our customers is a key priority for X5. The economic crisis is now behind us, but we understand that there is still a lingering burden for many in Russia. As inflation on food products continued in 2010, X5 made every effort to minimise the costs passed on to its customers. We did this by leveraging efficiencies across our business, which in turn enabled us to absorb some of these price increases. Prices on X5’s shelves rose on average by 8.7% year-over-year in December 2010 compared to December 2009. By comparison, Russia’s official food inflation rate in December 2010 was 12.9% year-over-year.
X5 cares about product affordability especially for socially vulnerable segments of the population. We offer special discounts and other benefits to Russian war veterans, pensioners and disabled persons. At Karusel hypermarkets and Perekrestok supermarkets, these groups 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.
Education and Health Initiatives
Each year, Х5 Retail Group conducts its “Perekrestok Goes to Schools!” education initiative. From September 1 through October 31, Perekrestok customers can vote for their favourite school to win valuable prizes. In 2010, 270 Perekrestok supermarkets in more than 70 Russian cities participated in the programme. A total of 5,285 schools located in Perekrestok operating areas competed for their share of RUR 19 million worth of prizes and gifts. The 860 schools that got the most votes received new IT equipment.
The Company is proud of its partnership with the Liniya Zhizni (Life Line) charity fund, which works to reduce child mortality from serious, treatable illnesses. Our customers provide their generous support to Liniya Zhizni by making contributions in special collection boxes displayed in our stores (Perekrestok and Karusel added in 2010.) Collection boxes were also installed at our headquarters in Moscow in 2010. During the year, Х5’s customers raised RUR 4.5 million in this way. The funds were given to Liniya Zhizni and were used to pay for surgical operations for severely ill children. During 2010, 19 young lives were saved by medical procedures that would have otherwise been unaffordable for these patients.
In November 2010, Х5 Retail Group and Liniya Zhizni held a fund-raising event in Rostov-on-Don. Area residents were able to donate at their discretion at a collection point opened by Liniya Zhizni. The amount raised in a single day was 30,550 rubles, which was put toward medical treatment for one-year-old Anastasia Lesteva, who suffers from a heart defect.
In 2010, Х5 Retail Group in partnership with the child welfare departments in Stary Oskol, Belgorod and Voronezh launched “They Are All Our Children”, a project to promote child adoptions in Russia. Each family who adopted a child was awarded a Karusel loyalty card with 30,000 rubles (300 thousand points) already on the account.
In March 2010, X5 launched another charitable programme, “The Magic of New Life”. In April and May, 5,000 bonus points were granted on Karusel loyalty cards to all families with newborn babies who shopped at Karusel stores.
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. Additionally, in September 2010, X5 donated 10 million rubles for the reconstruction of a children’s sports complex in St. Petersburg.