28 June 2022

Pyaterochka opens new distribution centre in Bryansk Region

Bryansk, 28 June 2022 – X5 Group (“X5” or the “Company”, LSE and MOEX ticker: FIVE), a leading Russian food retailer, has announced it is expanding its logistics infrastructure in central Russia and opening a new distribution centre (DC) for its Pyaterochka proximity store network in the Bryansk Region.

With a total floor area of 34,700 sq m, the Bryansk DC features six storage zones for fruits and vegetables, fresh products, frozen goods, caviar, dry goods and alcoholic beverages. Each zone has a specific temperature band best suited to keep products fresh.

At full capacity, the DC will supply products to 403 Pyaterochka stores across eight regions, with its seamless operation supported by 260 employees and 140 vehicles. Overall, Pyaterochka has created around 2,700 jobs in the Bryansk Region to date.

Under the oversight of X5 Real Estate, the construction of the DC took 18 months, from obtaining a construction permit to launching operations. The new centre is fitted with cutting-edge equipment that boasts strong operational performance and low energy consumption. In addition, the DC features an autonomous water supply system that draws high-quality water from its own intake unit supported by two 190-metre-deep artesian wells.

The launch of the new DC will enable the region’s manufacturers to not only reduce their transportation costs, but also to expand the geography of their sales. When operating at full capacity, the logistics facility will be able to handle products from about 600 suppliers, driving up the share of the Bryansk Region’s producers in the chain’s regional sales, which already exceeds 20%. Today, Pyaterochka works with more than 40 suppliers from the Bryansk Region, including Miratorg, Sodrugestvo, Bryansk Dairy Plant, Bryansk Bakery Complex No. 1 and many others.

Currently, X5 Group operates 215 Pyaterochka stores in the Bryansk Region.