7 April 2023

Chizhik opens new distribution centre in Kazan

Kazan, 7 April 2023 – X5 Group (“X5” or the “Company”, LSE and MOEX ticker: FIVE), a leading Russian food retailer, announces the opening of a new distribution centre (DC) in Kazan to support its Chizhik hard discounter chain. The new facility will serve up to 250 stores in the
Republics of Tatarstan, Mari El and Udmurtia, the Chuvash Republic, and the Samara and Ulyanovsk Regions.

The 19,500-square metre distribution centre in Kazan currently handles shipments from more than 200suppliers, including manufacturers of Chizhik’s private labels such as Svetaevo, Verner, Shchedry God, Greenola, Axl, Tafo, and others. The DC will also serve the chain’s stores that are scheduled to open in Kazan as early as 12 April. Chizhik stores stand out for their unique value proposition that 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.

More than 250 employees and about 120 vehicles will ensure the seamless operation of the logistics centre, which has capacity to process up to 1,800 tonnes of products per day.

The new DC was upgraded to a multi-temperature warehouse with storage areas for all key product categories, including groceries, fruits and vegetables, fresh products, frozen foods, and alcohol. The facility is Chizhik’s first DC to run a warehouse management system (WMS), which makes product handling and logistics much easier.

Chizhik is rapidly expanding its logistics footprint in line with X5’s goal to accelerate the development of its hard discounter chain. The new DC in Kazan is the seventh warehouse of the Chizhik retail chain, which opened its first DC in May 2022.

At the end of 2022, Chizhik had more than 500 stores in eight regions of Russia. In 2023, the retail chain plans to press ahead with its rapid expansion by doubling the number of store openings and new regions of presence.