10 June 2021

Pyaterochka opens new distribution centre in Kursk region

Kursk, 10 June 2021 – X5 Group ("X5" or the "Company"), a leading Russian food retailer (LSE and MOEX ticker: "FIVE"), announces the expansion of its logistics infrastructure in central Russia with the opening of a Pyaterochka distribution centre (DC) in the Kursk region.

With a total floor area in excess of 40,600 sq m, the Kursk DC features five storage zones (fresh products, fruit and vegetables, frozen goods, alcoholic beverages, and a dry storage facility). Each zone has a specific temperature band that is best suited to keep relevant products fresh.

At full capacity, the DC will supply food products to 730 Pyaterochka stores in the Kursk, Orel, Belgorod and Bryansk regions. The logistics facility is expected to handle 3,000 tonnes of goods per day, with its seamless operation supported by nearly 550 employees and 170 vehicles. Overall, Pyaterochka has created upwards of 2,400 jobs in the Kursk region.

The launch of the new DC will enable the region’s manufacturers not only to 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 1,000 suppliers, driving up the share of local producers in the chain’s regional sales (over 80% in certain categories). Today, Pyaterochka works with 17 suppliers from the Kursk region, including Kurskmakaronprom (dry goods), Kursk Milk (dairy), and Mushroom Rainbow (fruit and vegetables).

The Kursk DC will serve stores previously supplied by the Orel DC, which is due to be closed because the capacity and equipment no longer meet Pyaterochka’s needs. With the opening of this new DC, the total floor space of Pyaterochka’s warehouse facilities in Central Russia now exceeds 422,000 sq m.

Currently, X5 Group operates 182 Pyaterochka stores in the Kursk region, with ten more to be opened there by the end of 2021.