Moscow, 24 May 2018 – X5 Retail Group ("X5" or the "Company"), a leading Russian food retailer (LSE and MOEX ticker: FIVE), has signed four cooperation agreements with the Leningrad, Vologda and Yaroslavl regions and Republic of Karelia on the sidelines of the St Petersburg International Economic Forum.
The document signed by Alexander Drozdenko, Governor of the Leningrad region, and Stanislav Naumov, X5 GR Director, states that X5 will continue its rapid development in the region. Specifically, the Company plans to open at least 30 new stores within the next two years, creating about 600 jobs in the Leningrad region. All new stores will be accessible for people with disabilities. In addition, X5 plans to maintain and expand its contacts with local producers and continue its charity activities. There are currently 335 Pyaterochka proximity stores, six Perekrestok supermarkets and three Karusel hypermarkets in the Leningrad region.
The cooperation agreement signed by the Yaroslavl region Governor Dmitri Mironov and Stanislav Naumov will result in the construction of an X5 distribution centre and 50 new stores in 2018–2019. This undertaking should create nearly 800 new jobs. As part of the agreement, Yaroslavl Farmers’ Corners may also be set up in X5 stores to help deepen cooperation with local producers. At present, the region has 140 X5 stores, including 133 Pyaterochkas, five Perekrestoks and two Karusels, employing 1,740 people.
The agreement reached with Oleg Kuvshinnikov, Governor of the Vologda region, outlines joint plans to make the region more attractive for investors, promote Russian and local product in particular, and provide support for the poor. The Company intends to bring more quality goods, including those from local producers, to the regional market. The Vologda region has 126 Pyaterochkas currently employing 1,400 local residents.
The cooperation between X5 and Karelia aims to develop the local retail industry to satisfy popular demand for high quality goods at affordable prices. The agreement to this effect was signed by Artur Parfenchikov, Head of the Republic of Karelia, and Stanislav Naumov. X5 will open about 30 stores and a distribution centre in Karelia by the end of 2019. The logistics hub will strengthen relations with local producers and increase employment in the republic, creating at least 700 jobs. At present, there are 85 Pyaterochkas and one Perekrestok operating in Karelia and employing more than 1,200 local residents.