20 April 2021

X5 opens distribution centre in Moscow region

Moscow, 20 April 2021 – X5 Retail Group ("X5" or the "Company"), a leading Russian food retailer (LSE and MOEX ticker: FIVE) that operates the Pyaterochka, Perekrestok, and Karusel retail chains, announces the further development of its logistics operations in the Moscow region and the opening of a Perekrestok distribution centre (DC).

Located in Orientir Sever-4 park (in the Solnechnogorsky district of the Moscow region) and boasting a total area of over 42,500 sq m, the Severny DC features six storage zones for fresh products, frozen goods, chilled meat, fish and caviar, as well as a dry storage facility (for beverages, grocery, confectionaries, etc.). Each zone has a specific temperature band best suited to keep relevant products fresh. The new distribution centre currently handles products from over 1,100 suppliers.

The logistics facility is already supplying food products to more than 510 Perekrestok, Karusel and Chizhik stores in the Central, North-West, South, Volga and Urals regions of Russia, with nearly 160 stores located in the Moscow region. The new facility handles up to 1,400 tonnes of goods per day, with its seamless operation supported by more than 830 employees and 220 vehicles. Overall, Perekrestok has generated upwards of 6,600 jobs in the Moscow region.

"Each new DC is a big step inthe further evolution of our business. It is our well-developed logistics infrastructure that enables us to supply fresh and high-quality food to our customers on a daily basis. This DC ensures seamless and uninterrupted supplies across the majority of regions where Perekrestok operates, which makes it one of the key elements of our supply chain," said Х5 Retail Group CEO Igor Shekhterman.

The Severny DC will be catering to stores previously supplied by Altufyevo and Businovo DCs, whose capacity and equipment no longer meet the supermarket chain’s needs. The two DCs are now slated to be closed. However, with the new DC opened, the total floor area of Perekrestok’s warehouse facilities in the Moscow region now exceeds 131,000 sq m. As a result, the logistics infrastructure now relies on 9 DCs, including 3 DCs in the Moscow region. Currently, there are over 145 Perekrestok supermarkets in the Moscow region, 18 of which have been opened since the start of 2020.