Amsterdam, 19 February 2019 – X5 Retail Group N.V. ("X5" or the "Company"), a leading Russian food retailer (LSE and MOEX ticker: FIVE), and PickPoint, Russia's largest network operator of parcel lockers and pick-up points, have signed a letter of intent to create a joint venture that will develop a locker network across X5 retail chains.
The 50/50 joint venture will be registered as a new legal entity. By the end of the year, the new company is expected to operate 1,500 parcel lockers.
"By partnering with PickPoint, one of Russia's leading express delivery companies, we seek to maximise locker usage and increase parcel delivery from major online retailers. We also expect to gain invaluable expertise and know-how from the company that pioneered and has been successfully expanding the automated online parcel delivery business in Russia. With its extensive retail network across the country, X5 is well positioned to expand the range of convenient services we provide to our consumers," said Igor Pletnev, Director for Strategic Business Development at X5 Retail Group.
"This joint venture between PickPoint and X5 Retail Group will help expand last-mile logistics infrastructure and enhance e-commerce opportunities in Russia. Our next step is to open up the locker network operated by PickPoint to third-party online delivery companies. We see this as a fundamentally new logistics ecosystem enabling customers to shop at any online store and have their purchases delivered through our locker network," said Nadezhda Romanova, PickPoint's CEO.
X5 currently has over 1,700 lockers and pick-up points across its retail chains, with most of them operated by PickPoint through its unified sales network. Since the opening of the first pick-up point in early June 2018, over 300,000 parcels have been delivered to customers. The growing locker network will allow X5 to provide its customers with a convenient and popular service, give small online retailers and regional producers access to its extensive logistics infrastructure, and build up additional traffic.
PickPoint includes 5,500 parcel lockers and pick-up points in over 540 cities and towns across Russia. The company partners with some 5,500 online retailers. In 2018, approximately 10.5 m orders were delivered through the PickPoint network.
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