Russia's X5 Retail Group Sees Boost From Perekrestok Banner In Full-Year 2019
Russian retailer X5 Retail Group saw a solid performance from its Perekrestok banner in full-year 2019, with the banner seeing like-for-like sales rise by 7.3%.
Traffic at Perekrestok was up 5.0% for the year, while the average basket size was up 2.3%, the retailer said.
Elsewhere, the group's Pyaterochka banner posted a 3.7% increase in like-for-like sales for the year, with traffic up 1.9% and average basket up 1.8%.
Overall, for the full year, X5 delivered 13.2% growth in revenue for the full year, which it said was ahead of the rest of the Russian grocery market.
According to chief executive Igor Shekhterman, X5 slowed its organic expansion in the period, instead focusing on cost management, with "shrinkage continuing to decline at Pyaterochka and new technologies helping to cut energy consumption and improve waste management.
"Our investments in personnel yielded positive results, as displayed in lower shrinkage levels and improving NPS across our formats. For the first time in the company’s history, X5 achieved a personnel turnover ratio in line with the best food retail market benchmarks."
X5 reached an 11.5% share of the retail market in Russia during the period, he added.
Private label sales increased across the business, and now account for 13.9% of revenue at its proximity stores, and 7.9% of revenue at its supermarket operations, the retailer said.
In addition, its online Perekrestok.ru business saw revenue rise by 234% year-on-year, while its 5Post parcel delivery business continued to develop.
Reacting To Coronavirus
On the growing coronavirus challenge, X5 Retail Group said that its supply chain and logistics operations were 'well-prepared' to deal with potential challenges.
"However other effects, such as the impact from measures that may be taken in the future to prevent the spread of the virus, cannot be readily determined," commented Shekhterman.
© 2020 European Supermarket Magazine – your source for the latest retail news. Article by Stephen Wynne-Jones. Click subscribe to sign up to ESM: The European Supermarket Magazine.