15 June 2020 and 5Post launch grocery lockers

Moscow, 15June 2020 – X5 Retail Group (“X5” or the “Company”), a leading Russian food retailer (LSE and MOEX ticker: “FIVE”), announces that online supermarket and X5 subsidiary 5Post, which offers parcel delivery services, have launched a pilot click-and-collect service from grocery lockers in Perekrestok and Pyaterochka stores. This food delivery option is complementary to existing home food delivery services, as well as in-store pick up of parcels at checkout counters or pick-up points.

Currently 31 lockers for orders have been installed in Moscow (21 at Perekrestok supermarkets and 10 at Pyaterochka stores). During the pilot stage, pick-up from grocery lockers is only available for orders prepaid through the website. The new app will also feature this option in the near future. The minimum order is RUB 500, and delivery to the locker is free of charge.

Grocery lockers have cells with two temperature regimes: ambient temperature and zero to five degrees centigrade. Orders of frozen and bulky goods to the grocery lockers are limited during the pilot stage, and the maximum order weight is 20 kg. Click-and-collect orders for locker pick-ups are assembled at dark stores and delivered to the lockers by the online supermarket’s couriers. To collect an order, the customer enters the a code sent by text message. Purchases are stored in grocery lockers for a maximum of 12 hours (from 10 am to 10 pm).

The average check for orders collected from chilled lockers is about RUB 2,500, and during the service testing stage promotional and entry price items were the most commonly ordered goods.

“The grocery lockers pilot project is aligned with X5 Retail Group’s omnichannel strategy, and represents a synergy between –the 5Post parcel delivery service and our online food delivery service. During the COVID-19 outbreak, when we have seen heightened demand for online food services, this offering is especially relevant,” said Igor Shekhterman, X5’s Chief Executive Officer.

“This service addresses the stocking-up mission, and helps our customers save on delivery costs while we expand sales in response to the ongoing surge in the number of orders. Offering a variety of delivery options enables consumers to choose what fits them best. The final decision on the development of grocery lockers will be made based on the results of the test period,” said Leonid Dovladbegyan, Managing Director of online supermarket.

“Fast and safe order pick-up is a socially significant service. Being within walking distance for most of the country’s population, we seek to create a new quality standard for last mile delivery. Therefore, in addition to the rapidly developing network of parcel lockers and pick-up points, we launched a pilot project with grocery lockers to test demand for the service among customers,” said Vitaliy Dyrdasov, 5Post Managing Director.​