24 June 2024

Chizhik opens a distribution centre in Rostov-on-Don

Rostov-on-Don, 24 June 2024 – X5 Group (“X5” or the “Company”), a leading Russian food retailer, announces the opening of a distribution centre in Rostov-on-Don to support its Chizhik hard discounter chain. The new facility already serves about 80 stores in the Rostov Region and Krasnodar Territory. When ramped up to full capacity, the logistics centre will ship products to up to 250 stores.

The 14,000-square metre distribution centre in Rostov-on-Don currently handles shipments from more than 300 suppliers, including manufacturers of Chizhik’s private labels such as Svetaevo, Verner, Shchedry God, Greenola, Axl, Tafo and others. A carefully selected product mix and continuous product quality assurance are among the key factors that set Chizhik apart. Only those products that have been top-rated by tasters hit the shelves. Most SKUs offered by Chizhik are exclusive products that can rival major brands in terms of taste and quality while being more affordable.

Up to 250 employees and about 50 vehicles will ensure seamless operation of the logistics centre, processing over 1,000 tonnes of products daily.

The distribution centre was custom-built for the Chizhik retail chain to encompass the technology needed to ensure efficient processing. The DC will handle products across all key categories: groceries and non-food items, fruit and vegetables, fresh, frozen foods and alcohol. The facility runs a warehouse management system (WMS), which makes goods handling and logistics much easier.

Chizhik is rapidly expanding its logistics infrastructure in line with X5’s goal to accelerate the development of its hard discounter chain. By year-end, the chain plans to launch nine more new distribution centres across its operating regions.

As at the end of May, Chizhik opened over 1,700 branded stores in 43 regions of Russia. The chain will continue its active expansion throughout the year.