​​Our strategy

Vision: on a sustainable basis, X5 is set to become a recognised leader in the Russian food market and #1 food store in the hearts of the Russian consumer.


Multi-formats operation model

Allows X5 to combine the size with flexibility, growing quickly while also adapting each value proposition and the overall portfolio to the needs of the market and customer preferences

 

Best VP (Value Propositions)

  • Each retail chain aims to boost sales density by striving to provide the best value proposition, manage and adapt VP to shoppers' mission in its segment, drives traffic and creates best-in-class

Organic growth

Taking into account the relatively low rate of penetration of modern retail in Russia and the high level of fragmentation of the sector, compared to international standards, accelerated opening and roll-out of trading space is a critical consideration.

  • Quick, creative expansion and construction teams
  • Strong competencies in land acquisition (which allows for value creation through the real estate portfolio)
  • Tactical and regional M&A which reinforces and acts as regional market-entry mechanism

High efficiency of operations and investment returns

Achieving and maintaining X5's objectives, in a sustainable manner, will only be possible if each trade chain is a conscious lowest-cost operator in its segment. Business processes that reflect continuous improvement in category management, buying, DC logistics, transport, store operations and working capital management. Аppropriate levels of returns on investment: ROIC always >WACC and over time best-in-class, based not just on efficiency of operations but efficiencies of capex

Forward-looking "innovation"

  • Active management of complementary value propositions, creation and acquisition of new value propositions
  • Deep understanding of the consumer on a holistic basis
  • Technology as an enabler of leadership

 

Strong corporate culture

We will follow with the X5 corporate culture: adherence to customers, best results, continuous development and team work. ​​

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