25 August 2016

X5 strengthens logistics infrastructure in Urals

Chelyabinsk, 25 August 2016

X5 Retail Group N.V. (“X5” or the “Company”), a leading Russian food retailer (LSE ticker: “FIVE”), announces the successful completion of stage 2 of its Forpost distribution centre (DC) in Chelyabinsk. With the new storage zones in operation, the DC’s total area will grow by 3.5x and reach 21,000 sq m.

The launch of stage 2 of the logistics facility, including warehouses for storing dry goods and alcoholic beverages, as well as a banana-ripening room, will boost the efficiency of X5’s supply chains and provide a logistics platform to support rapid growth of the Pyaterochka retail chain in the Urals and Siberia. The new storage zones will also encourage more local sourcing. The share of locally produced items in Pyaterochka stores across the Urals Federal District stands at an average of 30%, and reaches as much as 100% in some categories. The DC will service 642 Pyaterochkas across six regions: Chelyabinsk, Sverdlovsk, Tyumen, Kurgan Regions, Khanty-Mansi Autonomous Area (Surgut), and Bashkortostan.

Together with the Kaskad DC, already operational in Chelyabinsk, stage 2 of the Forpost DC will double the total warehousing capacity for storing dry goods. The enhanced layout design of the new dry goods warehouse seeks to accommodate six-shelf storage units, helping to reduce the number of operations and kilometres driven by warehouse trucks.

The DC can accept up to 100 vehicles daily, servicing stores up to a distance of over 400 km. With 55 warehousing trucks, the DC’s employees can handle up to 450 tonnes of goods per day.

X5 invited managers of over 70 supplier companies from the Chelyabinsk, Sverdlovsk, Tyumen, Kurgan, Orenburg and Perm regions. For suppliers, the launch of stage 2 opens up new opportunities to develop cooperation with X5’s retail chains and boost supplies to X5’s stores.​​