18 July 2019

X5 opens new logistics centre in Russia’s north-west

Velikiy Novgorod, 18 July 2019 – X5 Retail Group N.V. ("X5" or the "Company"), a leading Russian food retailer (LSE and MOEX ticker: "FIVE"), announces the development of its logistics infrastructure in the Northwestern Federal District and the opening of a Pyaterochka distribution centre (DC) in Velikiy Novgorod*.

The opening ceremony was attended by Deputy Prime Minister of the Novgorod region Evgeny Bogdanov, Pyaterochka General Director Sergei Goncharov, as well as local suppliers and manufacturers.

With a total area around 20,000 sq m, the Velikiy Novgorod Distribution Centre will service Pyaterochka stores in the Novgorod, Tver and Pskov regions. This is X5’s fifth DС in the Northwestern Federal District. Featuring four separate temperature zones, the centre is designed to store dry goods and alcoholic beverages, fresh products, and fruits and vegetables.

The advanced logistics facility will contribute to lowering transportation costs, while also unlocking new benefits for local producers. The Velikiy Novgorod DC will be the focal point for local suppliers, facilitating opportunities to grow their sales and bring their products to other regions. At full capacity, the centre will be able to handle products from 400 plus suppliers. This is expected to increase the share of producers from the Novgorod region, which currently stands at more than 16%. Today, X5 is working with 37 local suppliers, of which 12 were added to the supplier list in 2018.

The seamless operation of the DC is currently supported by some 250 employees. Pyaterochka has generated upwards of 1,400 jobs in the Novgorod Region across its facilities and over 100 stores, more than 34 of which are located in Velikiy Novgorod.

​*The technical launch of the Veliky Novgorod DC was held in May.​