X5 and Courier Service Express sign strategic partnership agreement

Moscow, 22 May 2019 – X5 Retail Group N.V. ("X5" or the "Company"), a leading Russian food retailer (LSE and MOEX ticker: "FIVE"), and Courier Service Express (CSE) join forces in a project to deliver online orders to Pyaterochka, Perekrestok and Karusel stores, as well as directly to customers. The agreement was signed at the ECOM Expo 2019 exhibition by representatives of the CSE and X5 OMNI, an X5 subsidiary, developing a delivery technology platform based on X5 Retail Group logistics network and retail stores.

The agreement provides for full-cycle fulfilment and delivery of online orders processed by the CSE to parcel lockers and pick-up points located at X5 retail stores. Orders will be delivered through X5 OMNI's sorting centres using the company's logistics solutions. In addition, buyers will have the option of having the parcels delivered to their doorstep by CSE couriers.

Artem Kholin, Logistics and Operations Director at X5 OMNI, commented: "Our partnership with Courier Service Express is yet another important step in building up our parcel delivery capacity. As part of the project, the companies will integrate their IT systems to make sure that CSE deliveries can be tracked in X5 OMNI's technology platform. The X5 OMNI parcel delivery technology platform includes X5's IT systems, OMNI's accounting system (OMS, WMS, TMS) and the API integration software with e-commerce companies. The platform can handle up to 1 million shipments per day. By the end of 2020, parcel delivery services will be available in the vast majority of X5 stores."

Vladimir Vinogradov, CSE's CCO "Our partnership with X5 Retail Group is set to create joint last mile services for delivering online orders, parcels, and mail to customers, using their preferred delivery options. X5 offers an extensive network of retail stores, many of which have parcel lockers and pick-up points. This facilitates parcel collection for customers who can receive their orders at a time and place convenient to them and for an affordable price. Thanks to this project we are hoping to further streamline customer experience, as we seek to expand our footprint and offer competitive prices and exceptional service."

Igor Pletnev, Director for Strategic Business Development at X5 Retail Group, said: "Our goal is to create a nationwide package delivery network by leveraging the potential of our retail stores and logistics capabilities. To this end, we mostly work with e-commerce companies to capitalise on their expertise in the field. Some 2,400 stores are already equipped with parcel lockers and pick-up lockers, including 47 Pyaterochka checkouts and 21 pharmacy pick-up points. Customers pick up over 7,000 parcels at X5 stores on a daily basis. Customer survey results attest to a great potential of the service. Out of the 4,000 Pyaterochka customers of the stores equipped with parcel lockers, 20% have already used the service with 74% finding it convenient and planning to use it going forward."

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