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Retail

Pyaterochka, McDonald’s Set Up In-Store Fast Food Restaurant

Russia's X5 Retail Group has teamed up with McDonald's on an initiative to open fast food outlets in a number of the retailer's Pyaterochka stores.

The first outlet, in a Pyaterochka store in Moscow, can be accessed from both the street and inside the store, and also offers delivery and drive-thru options.

This is the third in-store McDonald's has launched as part of its venture with X5 Retail Group, following on from openings in Perekrestok supermarkets in Khimki and Domodedovo last year.

Customer Appeal

Sergei Goncharov, general director of Pyaterochka, commented that the retailer strives "to offer our customers everything they need – and a little bit more. Our partnership with McDonald's [...] will make Pyaterochka the neighbourhood's centre of gravity, especially for young people, and a one-stop shop where people can both buy groceries and household goods and have a quick bite to eat."

Karina Pogosova, senior vice president of development, IT, and franchising at McDonald's Russia, said this continued collaboration is an important step for the fast-food business, as it aims to "take the lead in building new customer experiences and best service offerings together with our partners, while driving McDonald's further growth in Russia by leveraging diverse innovation formats."

Both parties are hoping the move will allow them to gain valuable insight into consumer habits, as well as foster brand loyalty in consumers. The partners plan on opening several more stores in the coming year.

Analyst Viewpoint

Retail analysts Sova Capital gave their thumbs up to the venture, saying, "We believe this could be an interesting partnership model that offers X5 customers a new experience and expands the service offering in X5 stores.

"The idea of making Pyaterochka a one-stop shopping destination where people can not only buy groceries but also pick up online orders (5Post), buy medicine (sub-leased pharmacies) and grab a snack should facilitate greater customer engagement, stronger traffic generation and increased customer loyalty."

© 2021 European Supermarket Magazine – your source for the latest retail news. Article by Conor Farrelly. Click subscribe to sign up to ESM: The European Supermarket Magazine.

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