15 July 2022

Chizhik opens first stores and a distribution centre in Bashkortostan

Ufa, 15 July 2022 – X5 Group (“X5” or the “Company”, LSE and MOEX ticker: FIVE), a leading Russian food retailer, announces the launch of its Chizhik hard discounter format in Bashkortostan and the opening of a dedicated distribution centre in Ufa, the region’s major city.

Four Chizhik stores opened their doors to customers in Bashkortostan on Friday, including three hard discounters in Ufa and one in Iglino[1]. Eight more stores will open in the region in July, with another 40 to open by the end of 2022.

Chizhik’s unique value proposition combines attractive prices with high-quality products. The format’s pricing policy is based on a significantly more affordable food basket compared to the market average and is built around the motto “low price every day”, meaning that the retail chain maintains consistently low prices for the entire product range. The store’s visual design embodies simplicity and incorporates modern trends with its wide aisles, easily readable price tags and convenient product display. The product range comprises around 800 SKUs, including 300 private labels that have already proven popular among customers. These include brands such as Svetaevo, Verner, Shchedry God, Greenola, Axl, Tafo and others.

In line with its target operating model, the chain opened its own distribution centre (DC) before expanding into a new region. The new facility in Bashkortostan has a total floor space of 8,000 sq m and currently receives shipments from over 200 partners of the retail chain. As of today, the DC has capacity to supply products to 120 stores, which may be expanded to service up to 250 outlets.

The DC stands out among other similar facilities due to its multi-format operation mode: capable of storing products in various conditions, it allows shipping of grocery items, ultra-fresh and frozen products, as well as alcohol. X5 uses its own fleet of delivery vehicles to transport products from the DC, with drivers assigned specifically to Chizhik. This helps to ensure an excellent level of service and streamline interactions within the supply chain.

Chizhik stores currently operate in Moscow and the Moscow Region, as well as in the Republic of Bashkortostan, Tver, Tula, Vladimir, Nizhny Novgorod, Voronezh, and Lipetsk regions. In 2021, the chain launched 72 new stores.

[1] Ufa, Tallinskaya str. 21k2

  Ufa, Balandin Blvd., 9

  Ufa, Derevenskaya perep., 53

  Iglino, Lenina str., 92