Russia's X5 Retail Group Sees Like-For-Like Sales Up In First Quarter
Russia's X5 Retail Group has announced a 5.7% increase in like-for-like sales in the first quarter of its financial year.
Net retail sales at the group, which operates the Pyaterochka, Perekrestok and Karusel banners, was up 15.9% for the period, to RUB 469 billion (€5.8 billion).
The group's Pyaterochka banner saw sales rise by 17.4% in the period, or 6.1% on a like-for-like basis, while its Perekrestok arm posted a net retail sales gain of 21.3%, or 5.9% on a like-for-like basis.
Its Karusel hypermarket banner, however saw net retail sales decrease by 18.8% (with like-for-like sales down 3.2%).
The retailer said that the weaker performance for Karusel was due to the closure of 16 hypermarkets and the transfer of two stores to the Perekrestok banner, in line with the format's transformation plan.
The period saw the acceleration of a rollout of a new concept for its Pyaterochka stores, with 261 new outlets opened under the format in the quarter.
In addition, four Perekrestok supermarkets were reopened following refurbishments.
X5 Retail Group said that while like-for-like traffic was the main sales driver for the business in January and February, this shifted to like-for-like basket size in in March, amid the growing coronavirus situation.
The group also saw its Perekrestok.ru and Pyaterochka online delivery services surge in March, with the number of orders delivered by Perekrestok.ru exceeding 8,700 on peak days, while its express delivery service from Pyaterochka, which is available in Moscow and Kazan, is currently handling around 10,000 orders per day.
'In the face of the constantly changing situation surrounding the spread of COVID-19, X5 has been able to meet the rapid growth in demand caused by consumers stocking up before the lockdown was announced in Russia on 28 March 2020,' the group said.
'Our supply chain has been operating smoothly and stores remain open and well-stocked, while we are also protecting employees and customers.'
The retailer said that due to the coronavirus outbreak, its plans to refurbish some 1,300 Pyaterochka stores and 30 Perekrestok supermarkets is to be 'revised', and it will update the market on its plans shortly.
© 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.