Moscow, 3 November 2022 – X5 Retail Group N.V. (“X5” or the “Company”, LSE and MOEX ticker: FIVE), a leading Russian food retailer that operates the Pyaterochka, Perekrestok and Chizhik retail chains, has finalised a strategic partnership with Krasny Yar and Slata groups, two of the leading retailers in Eastern Siberia.
As part of the agreement, X5 acquired 70% of Krasny Yar’s and Slata’s businesses following the relevant approvals by the Federal Antimonopoly Service (FAS) of Russia. Once all FAS requirements are met, Krasny Yar Group will operate 232 stores with a total retail space of 98.2 ths sq m, while Slata Group’s business will comprise 362 stores with a total retail space of 132.1 ths sq m.
Both retail chains will retain their brands and business models, while some processes will be integrated with X5 to achieve synergies, including in procurement and logistics.
Strategic oversight of the Krasny Yar and Slata chains will be carried out by a management company that was founded in August 2022 and represents X5 as well as both companies on its board of directors. The chains’ existing management teams will continue to manage their respective operations.
Krasny Yar Group operates Krasny Yar and Baton stores in the Krasnoyarsk Territory, Tyva and Khakassia, while Slata Group operates Slata and KhlebSol stores in the Irkutsk Region, Buryatia and the Transbaikal Territory. In addition, both groups are tenants of a total of four distribution centres with a cumulative area of 62.3 ths sq m: one in Krasnoyarsk, two in the Irkutsk Region and one in the Transbaikal Territory.