24 May 2017

X5 opens first store in Yamal-Nenets Autonomous Area

YaNAO, Purpe, 24 May 2017 – X5 Retail Group has launched its first operations in the Yamal-Nenets Autonomous Area. The first Pyaterochka was opened in Purpe, Purovsky District. The launch of operations in the Yamal-Nenets Autonomous Area marks yet another step in X5’s eastward drive. The store is part of the Company’s Urals Division. The social and demographic environment, as well as X5’s logistics infrastructure, could support the opening of another 80–90 stores in the region.

X5 is implementing its growth strategy and investing in the quality of life in Russia by expanding its reach into towns with less than 100,000 residents. Over 40% of all Pyaterochka stores are located in towns with a population below 100,000 people.

The new Pyaterochka is one of the largest retail spaces in Purpe, with the floor space exceeding 650 sq m. Next to the checkout zone are a hairdresser’s and a flower shop. The store offers more than 3,600 SKUs, including locally made baked goods and dairy products from the Tyumen and Sverdlovsk regions. Nationwide suppliers deliver fruit, vegetables, fresh meat and other perishable goods to the region.

The Pyaterochka store gets products directly from producers via a Federal Distribution Centre in the Sverdlovsk Region and a cross-docking site in Surgut. With a range of delivery modes at its disposal, X5 is able to ensure the uninterrupted supply of its full product range, regular in-store availability, high quality and reasonable prices.

The Pyaterochka in Purpe will operate using the same technologies and guidelines as the 9,000+ stores that make up the retail chain, including quality control carried out at the Company’s laboratories, DCs and stores, a convenient shopping space layout, state-of-the-art in-store equipment, and professional lighting systems.

The new Pyaterochka employs 11 local staff who have been trained in the retail chain’s training centre. The newcomers learned how to handle food goods, monitor product and service quality, and use electronic devices and software for ordering and selling goods. Going forward, the Company will offer additional training opportunities in various retail practices. Successful employees will have a chance to become managers at other stores opening in the region, or get jobs elsewhere in Russia.