Volgograd, 28 July 2023 – 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 Volga region and the opening of a distribution centre in the Volgograd Region to serve the Pyaterochka retail chain.
The 42,800-square metre distribution centre in Volgograd includes six storage areas: dry and alcohol warehouses, storage areas for fresh products, frozen foods and caviar, as well as for fruits and vegetables. Each section has special temperature conditions necessary to keep products fresh.
Once it is fully ramped up, the distribution centre will serve 410 Pyaterochka stores in the Volgograd and Astrakhan Regions as well as 200 stores from X5’s Chizhik hard discounter format. The centre’s seamless operation is ensured by 350 employees.
The new DC will enable local manufacturers to not only cut their transportation costs but also expand their sales footprint. The logistics hub will handle shipments from about 400 suppliers. The centre will further increase the share of local producers in Pyaterochka’s sales in the Volgograd Region, which already exceeds 25%. Pyaterochkacurrently partners with more than 90 local suppliers, including Molsyrkombinat-Volzhsky, Sady Pridonia, Ovoshchevod, Khlebozavod No. 5, Khlebokombinat-Volzhsky, Volgograd branch of Wimm-Bill-Dann, ElanskiyCheese Plant and others.
Today, X5 Group operates 289 Pyaterochka, Perekrestok, and Chizhik stores in the Volgograd Region as well as 229 Pokupochka and PokupALKO stores.