20 October 2023

X5´s hard discounter launches in Siberia

Novosibirsk, 20 October 2023 – X5 Group (“X5” or the “Company”, LSE and MOEX ticker: FIVE), a leading Russian food retailer, announces the opening of its Chizhik hard discounter stores in the Novosibirsk, Tomsk and Kemerovo Regions, as well as in the Altai Territory. The chain has launched 11 stores in 7 cities, with the total count of Chizhik stores in these regions expected to reach 45 by October-end. Chizhik is planning to launch up to 90 stores in Siberia by the end of 2023.

Chizhik stores offer a small but sought-after selection of value-for-money products. The Chizhik store assortment features approximately 700 SKUs, including over 400 private label items that are unique to the chain.

A carefully selected product mix and continuous product quality assurance are among the key factors that set Chizhik apart. Only those products that have been top-rated by tasters hit the shelves. All suppliers are audited, with Chizhik verifying product formulation and label claims as well as compliance with Russian state standards and other requirements. Chizhik’s products are thoroughly tested by independent accredited laboratories. The chain also acts quickly on any customer feedback flagging potential quality issues, with ad-hoc supplier audits performed when non-conforming products are identified. In addition, Chizhik uses customer feedback to refine product formulations and ingredients or improve packaging, and offers customers a full refund with no receipt required if they are unhappy with the taste or quality of any product purchased at the chain. 

Most SKUs offered by Chizhik are exclusive products that can rival major brands in terms of taste and qualitywhile being more affordable. Chizhik also stands out for its unique Nado Uspet (“Catch the Price”) zone that highlights the best deals in household, kitchen, garden goods, children’s goods and other categories – all in one place. This highly popular selection is rotated every week.

The new stores will be supplied from Chizhik’s distribution centre in Novosibirsk with shipments from both nationwide and local suppliers. The 10,700 square metre multi-temperature warehouse launched this week has a capacity to store up to 11,000 pallets and can continuously serve over 200 Chizhik stores.

Chizhik has already created 360 jobs in the four regions, expecting to add another 200+ jobs in the Novosibirsk, Tomsk and Kemerovo Regions and the Altai Territory by the end of the year.