29 October 2020

X5 opens hard discounter Chizhik

Moscow, 29 October 2020 – X5 Retail Group, a leading Russian food retailer that operates the Pyaterochka, Perekrestok, and Karusel retail chains, announces the opening of its first two hard discount stores under the Chizhik brand. The new stores are located in Moscow (Dolgoprudnaya Street) and in Balashikha in the Moscow region (Mayakovsky Street).

The selling space of each store is around 250 sqm, with an assortment of approximately 800 in-demand SKUs. The new format is being built around a private label assortment that is expected to account for 60% of the offering. Private label goods will be introduced gradually, with the first batches planned to appear on Chizhik shelves in February 2021, after which their share will grow to 30% by the end of the year.

X5 will use the two pilot sites to iron out operational issues and develop the private label assortment based on customer feedback. Each product will undergo quality testing with a focus on consumer preferences, including comparisons with leading peer products across various categories. Only those private label goods that are deemed to be on par with or better than their counterparts will be allowed on Chizhik shelves. Customers will then have the opportunity to rate the private label products presented in the stores by leaving reviews via a special chatbot, which can be accessed through a QR code placed in the sales area. Individual products will be improved if necessary based on customer feedback, including through adapting ingredients, recipes, packaging and even the exclusion of the item from the product matrix.

The new format’s pricing policy envisages a less expensive food basket compared to the market average and is built around the motto “low price every day”. The store’s visual design embodies simplicity and embraces modern trends with its wide aisles, easy-to-read price tags, and shelf-ready packaging of the goods on sale.

X5 Retail Group CEO Igor Shekhterman said:

We are taking the best-selling goods and using them as a blueprint for our own high-quality labels that we are developing based on customer feedback, which enables us to meet shoppers’ needs in a smart way. Chizhik is a retail chain for rational buyers who are committed to a pragmatic approach to shopping.”​