12 October 2017

X5 opens first distribution centre in Siberian Federal District

Novosibirsk, 12 October 2017 – X5 Retail Group ("X5" or "the Company"), a leading Russian food retailer (LSE: FIVE), announces the opening of its first distribution centre (DC) in the Siberian Federal District.

The 17,000 sq m DC in Novosibirsk will service all Pyaterochka stores in the Kemerovo, Novosibirsk, Omsk and Altai regions (186 stores as of 30 September 2017). Featuring four separate zones with a specific temperature band each, the facility is designed to store nearly all categories of goods.

The new logistics centre will help ensure goods are always fresh and available to match the pace of Pyaterochka’s active expansion, contributing to lower transportation costs and unlocking new opportunities for local producers. The Novosibirsk DC will be the focal point for local producers, as it will help to support their sales and bring their products to other regions. It will also help cut delivery costs for suppliers, more than 400 of whom already have their products processed at the DC.

Siberian-produced items account for more than 25% of the product range at Pyaterochka stores in the Siberian Federal District. The retail chain works with more than 130 local producers, including 50 businesses in the Novosibirsk region, more than 30 in the Omsk region, 22 in the Kemerovo region, and 23 in the Altai region. 

The logistics facility helped increase the number of jobs provided by the Pyaterochka retail chain in the Novosibirsk region by 190, to 1,150 jobs. To date, X5 has generated over 2,800 jobs across all regions of its operation in Siberia.

The DC opening ceremony was attended by Minister of Industry, Trade and Entrepreneurship Development of the Novosibirsk Region Nikolay Simonov and Pyaterochka CEO Olga Naumova. X5 Retail Group invited managers of more than 80 major suppliers from the Siberian Federal District to take part in the ceremony.

After the event, the Novosibirsk DC hosted the X5 Dialogue Forum, where representatives of X5 Retail Group’s chain stores shared X5’s best practices in partnering with local suppliers and food producers. Local manufacturers received valuable advice on how to build relationships with retail chains, including information on product quality controls and requirements for transportation, storage, sales and disposal of food products set out in the applicable technical regulations of the Customs Union and X5.