X5 to speed up testing of innovations for supermarkets

Moscow, 20 November 2019 – X5 Retail Group ("X5" or the "Company"), a leading Russian food retailer (LSE and MOEX ticker: "FIVE"), is opening a lab based at a Perekrestok supermarket to conduct quick testing and R&D for emerging technologies.

The lab was created to enable X5 to explore opportunities to improve efficiency and test proprietary developments. It is also a place where pilot projects such as Smart Panels, video monitoring systems (F&V zones, queues and shelves), electronic shelf labels, AR and VR, as well as loyalty programmes can be further refined. Located next door to a Perekrestok supermarket, the lab is well equipped to test new solutions on-site, verify compatibility with X5's existing IT landscape and ensure smooth deployment. The technologies that prove to be effective in lab trials are then tested in a limited number of supermarkets. The new lab will also host agile training for project teams, themed activities and workshops for partners and suppliers.

"Perekrestok is increasingly embracing innovation, with stores hosting a number of tech pilots that are intended to drive development of the supermarket format and create a new customer experience. We are open to trying and using developments from leading start-ups from around the world, as well as solutions from the X5 innovation funnel. The new lab will enable us to test our ideas and solutions quickly and effectively and to accelerate the pace of deployment and scaling," said Denis Kharitonov, Head of IT and Strategic Projects at Perekrestok, at the lab opening ceremony.

The lab is located in the experimental large Perekrestok store at 8 Andropov Avenue in Moscow, which already offers the most advanced technologies piloted by the format, such as self-checkout systems, video monitoring to control queues, a self-scan system and a Click & Collect point for Perekrestok.ru.

Since October 2018, there has also been a Pyaterochka-based lab store. Located next to the shopping space, the lab office enables developers, service engineers, support staff, analysts and IT experts to conduct in-store testing. The opening of the lab allowed the proximity format to considerably step up the pace of deployment and scaling of innovative solutions.​

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