27 November 2018

X5 strengthens logistics on the Volga Region

Saratov, 27 November 2018X5 Retail Group ("X5" or the "Company"), a leading Russian food retailer (LSE and MOEX ticker: FIVE), announces the development of its logistics infrastructure in the Volga Federal District and the opening of a distribution centre (DC) in Saratov.

The opening ceremony was attended by Saratov region Governor Valery Radayev, X5 Government Relations Director Stanislav Naumov and major suppliers of the Saratov region.

The 16,000 sq m Saratov DC is the tenth logistics facility in the Volga Federal District, and it will supply all Pyaterochka stores in the Saratov and Volga regions. Featuring six separate zones, each with a specific temperature band, the facility is designed to store nearly all categories of goods.

The advanced logistics facility will help make sure that goods are always fresh and available, while matching the pace of Pyaterochka’s active expansion, contributing to lower transportation costs and unlocking new opportunities for local suppliers. The Saratov DC will be the focal point for suppliers, as it will help ramp up sales and bring their products to other regions, as well as significantly cut delivery costs. At full capacity, the centre will be able to handle and store products from over 350 suppliers.

The new logistics facility will help enhance the share of local goods, which currently account for more than 20% of Pyaterochka’s turnover in the Saratov region. In 2017, X5 Retail Group added seven producers from the region to its supplier list.

The seamless operation of the Saratov DC will be supported by more than 200 employees. Pyaterochka has generated almost 2,000 jobs in the Saratov region across its facilities and over 160 stores, 50 of which are located in Saratov.