X5 opens 6th distribution centre in Moscow region

Moscow, 19 October 2017 – X5 Retail Group ("X5" or "the Company"), a leading Russian food retailer (LSE: FIVE), announces the opening of a new distribution centre (DC) in the Moscow region.

The 43,000 sq m Moscow-North logistics facility will serve 650 Pyaterochka stores in Moscow and in the Moscow and Tver regions. Featuring five separate temperature zones, the facility is designed to store nearly all categories of goods.

The new logistics centre will help support Pyaterochka's rapid expansion with a reliable supply of fresh goods, contribute to lower transportation costs and unlock new opportunities for local producers. The Moscow-North DC will be a focal point for local suppliers by helping them to increase sales and bring their products to new regions. It will also help significantly cut delivery costs for contractors. The new distribution centre is ready to handle products from over 500 suppliers.

The Moscow-North DC is one of the most high-tech of its kind in Russia. It employs innovative solutions that streamline operations and increase labour productivity. The DC is also one of the first projects to implement cutting-edge merchandise distribution control systems such as USAIS (Unified State Automated Information System) and Mercury.

The opening of X5's new distribution centre has created 600 jobs.

The DC opening ceremony was attended by Alexander Kalinin, President of the OPORA Russia public association of small and medium-sized businesses, Olga Naumova, Pyaterochka CEO, and representatives of government authorities. Х5 Retail Group also invited its suppliers to the event. For suppliers, the Moscow-North DC hosted an X5 Dialogue Forum and the Chain Reaction business game after the opening. Organised in cooperation with OPORA Russia, these were held to communicate X5's key business principles to its current and potential suppliers.

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