28 March 2024

Pyaterochka opens largest distribution centre in Ural region

Yekaterinburg, 28 March 2024  X5 Group (“X5” or the “Company”, LSE and MOEX ticker: FIVE), a leading Russian food retailer, announces another milestone in developing its logistics infrastructure in the Ural Federal District with the opening of a distribution centre (DC) in the Sverdlovsk Region to serve its Pyaterochkaretail chain.

The 59,000-square metre DC, named Yekaterinburg South, features six storage areas: these include warehouses for dry goods and alcohol, as well as storage areas for fresh products, frozen foods, confectionery, and fruits and vegetables. Each section has its own special temperature conditions to keep products fresh.

At full capacity, the DC will ship up to 400,000 boxes daily and serve up to 2,500 stores. The Yekaterinburg South DC has the largest walk-in freezer among all DCs in the Urals, measuring over 3,500 square metres. The facility will supply products to Pyaterochka stores in Yekaterinburg, Beloretsk, Kamensk-Uralsky, Kurgan, Magnitogorsk, Nizhny Tagil, Perm, Salekhard, Surgut, Tomsk, Tyumen, Chelyabinsk, and other cities.

The new DC will enable producers in the Urals to not only cut their transportation costs but also expand their sales footprint. The logistics hub currently handles shipments from more than 560 suppliers, with a potential to grow this number in the future. In addition, the DC will further increase the share of Urals-based producers in X5’s assortment, which currently reaches 80% in some categories – including 67% in dairy, 52% in fats and oils, and 27% in deli meat.

The DC’s seamless operation is ensured by 550 employees. The Pyaterochka chain provides a total of over 6,000 jobs for local communities in the Sverdlovsk Region.