11 September 2023

X5 launches a one-stop-shop platform to sell marketing inventory

Moscow, 11 September 2023 – X5 Group (“X5” or the “Company”, LSE and MOEX ticker: FIVE), a leading Russian food retailer, announces the launch of a proprietary service to sell marketing inventory across the Group’s retail chains and businesses. In a first for the Company, X5 is rolling out a solution that consolidates all of its marketing capabilities on a one-stop-shop platform for suppliers and partners. The media kit already includes Pyaterochka, the media platform, and the Dialog.X5 platform tools. Future plans include integrating the Group’s remaining services and businesses.

Selling marketing inventory via a single platform rather than separately through individual retail chains will provide the Group’s partners with access to advertising capabilities across a range of its businesses as well as to big data–powered analytical tools. The platform consolidates knowledge of marketing inventory and runs processes to sell, facilitate, and support an advertiser’s advertising campaigns and marketing activities, from needs identification to long-term media planning. X5 Group’s one-stop-shop service helps advertisers carry out both end-to-end and ad hoc tasks within marketing campaigns. In particular, it handles tasks around brand knowledge building and development, product promotion, demand research, sales stimulation, the use of tools to influence customers, and maximising reach through cross-format opportunities unlocked by the service.

The Dialog.X5 platform’s big data–powered analytical tools extract insights into brand and product metrics to better understand the reasons for a drop in sales, identify growth opportunities, and select key performance indicators for a particular campaign. Brands can get a clearer understanding of their target audience and roll out promotions driven by customer behaviours and preferences.

“Currently, over 17 million customers visit X5 stores and services every day. We know our customers well and understand their daily needs and habits, which enables us to offer our partners – suppliers and SMEs –unique opportunities to promote their own food and non-food items. A one-stop-shop media planning service allows X5’s partners to see beyond one particular retail chain, get information about retail media, and leverage it to boost the performance of their marketing campaigns, supported by the transparent evaluation of the sales and ROI impacts they deliver. As a result, brands will be able to plan their campaigns more effectively, focusing on specific objectives and target audiences and analysing consumer behaviours throughout the customer journey. With the launch of this one-stop-shop service, X5 is set to become the operator of Russia’s largest advertising platform, on par with global retail giants,” commented Mikhail Yartsev, Strategic Marketing Director at Pyaterochka.

The service’s unified components along with analytical data allow brands to optimise media costs, coordinate their marketing activities, and boost their ROI. Any commercial or non-commercial entity, including X5’s existing suppliers, can access the Group’s one-stop-shop media planning service.

For X5 partners, the service will unlock access to a large data pool and analytics database. With 72.5 million active members at the end of Q2 2023, the loyalty programme’s penetration of sales hit 76.2%. The average ticket was 7% higher for customers who picked their favorite categories (there were 1.9 million such customers as of the end of the quarter). The total number of purchases across the Group’s businesses topped 1.86 billion in Q2 2023. Over 170 thousand express delivery orders originating in X5’s retail chains or the online hypermarket were fulfilled every day. X5’s digital services posted 21.4 million MAUs in Q2 2023, up 33.4% year-on-year.