Russian retailer X5 Group has entered into an agreement with LLC Restructuring Centre to open Pyaterochka stores in the retail spaces formerly occupied by the Grozd retail chain.
Pyaterochka has acquired long leases of more than 100 Grozd stores in Saratov and the Saratov Region, X5 Group said in a statement.
The deal includes 70 Grozd stores in Saratov, 14 in Engels, and another 11 stores in major district centres of the Saratov Region.
X5 Group plans to refurbish all stores in line with Pyaterochka’s new store concept, focusing on low prices, fresh and quality products and a pleasant shopping experience, the retailer said.
Store Rebranding
The revamped Pyaterochka stores feature a more ergonomic layout, specific colour schemes in the floor design, and customer-friendly navigation, X5 noted.
The retailer hopes to complete the transition of the Grozd stores to the Pyaterochka brand in the first quarter of 2024.
Currently, X5 operates 385 Pyaterochka stores, seven Perekrestok supermarkets and 26 Chizhik hard discounters in the Saratov Region.
Quarterly Report
X5 Group reported a 22.7% increase in net retail sales in the third quarter of its financial year, to RUB 147.1 billion (€1.42 billion).
The group said that its performance was driven by a 10.2% increase in like-for-like sales, as well as an increase in sales space.
X5 opened an additional 784 stores in the quarter, including 513 proximity stores, 262 hard discounters under the Chizhik, five dark kitchens, and five Krasny Yar and Slata stores.
Its digital platforms saw a 100.9% increase in gross merchandise value (GMV) in the period, compared to the same quarter last year, while the number of orders was up 170.5%, to 19.58 million.
