Moscow, 13 October 2017 – X5 Retail Group ("X5" or "the Company"), a leading Russian food retailer (LSE: FIVE), plans to concentrate on its three major formats: Pyaterochka proximity stores, Perekrestok supermarkets and Karusel hypermarkets. The Company's small-format convenience stores operating under the Perekrestok Express brand in Moscow will be put on sale. X5 has selected Renaissance Capital to assist with preparation of the deal. Perekrestok Express accounts for less than 1% of X5's revenue.
X5 Retail Group CEO Igor Shekhterman said: "Convenience stores like those that Perekrestok Express operates in Moscow, which have a selling space of up to 200 sq m, certainly have potential. However, they represent a fairly narrow segment of Russia's modern food retail market, in which proximity stores, supermarkets and hypermarkets occupy more than a 90% share. With our market share in these formats steadily growing, we have decided to focus our full attention on continuing to develop the customer value propositions of Pyaterochka, Perekrestok and Karusel, including in Moscow."
This year, X5 has successfully bolstered its major retail formats, while also improving the quality of its store portfolio in Moscow. To achieve this, the Company has, among other things, leased over 100 premises that previously hosted Monetka and Sedmoi Kontinent stores. By the end of this year, these locations will reopen as Pyaterochka stores and Perekrestok supermarkets.
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