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Russia's X5 Continues To See Growth From Digital Channels

Russian retailer X5 Retail Group achieved solid growth across its digital delivery services in February, boosting its market share in the country's capital.

Sales generated by express delivery from Pyaterochka and Perekrestok stores as well as the Okolo delivery aggregator in February 2021 totalled RUB 2.1 billion, while the number of orders exceeded 1.3 million (not including Vprok.ru).

The online platform Vprok.ru, which is primarily for stock-up shopping, boasted a GMV of RUB 1.7 billion, up 122% compared toFebruary 2020.

Overall, the share of digital sales in the retailer's total revenue exceeded 2% during the second month of the year, and reached 4.5% in Moscow and the Moscow region during the same period.

The retailer now offers its digital services to customers in 26 regions of Russia.

New Markets

In February 2021, express delivery from Perekrestok stores was expanded to Togliatti, Perm, Volgograd, and Tyumen, while Pyaterochka rolled out the service in smaller towns like Dzerzhinsk and Zelenodolsk.

Currently, X5 delivers goods from 683 stores and eight dark stores operated by Pyaterochka, 460 supermarkets operated by Perekrestok, as well as from five Vprok.ru dark stores.

Last Year

X5's online businesses generated a gross merchandise value (GMV) of RUB 21.9 billion (VAT included) in 2020, of which Perekrestok Vprok accounted for RUB 15.0 billion, while express delivery from Pyaterochka and Perekrestok stores and Okolo (launched in Q4 2020) accounted for RUB 6.9 billion.

In addition, X5 delivered 7.9 million online orders placed via its own web and mobile platforms last year, up from 1.4 million in 2019, fuelling an impressive 347% year-on-year rise in X5's online GMV.

According to INFOLine, the total GMV of Russia's online food retail market was RUB 155 billion in 2020, up 3.6 times year-on-year. X5's market share was 13%.

The agency's data showed that X5 was the largest digital company in the e-grocery market last year. [Pic: ©Blinow61/123RF.COM]

© 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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