Russia's X5 Retail Group has acquired a controlling interest in Krasny Yar and Slata groups, two retailers in Eastern Siberia.
X5, which operates the Pyaterochka, Perekrestok and Chizhik retail chains, has acquired 70% of the Krasny Yar and Slata businesses, following approval by the Federal Antimonopoly Service (FAS) of Russia.
Following the completion of the transaction, Krasny Yar Group will operate 232 stores, while the Slata Group business will comprise 362 stores.
Brands And Business Models
'Both retail chains will retain their brands and business models, while some processes will be integrated with X5 to achieve synergies, including in procurement and logistics,' X5 said in a statement.
Krasny Yar Group operates the Krasny Yar and Baton banners in Krasnoyarsk territory, Tyva and Khakassia, while Slata Group operates the Slata and KhlebSol banners in the Irkutsk region, Buryatia and Transbaikal territory.
Between them, the two groups also operate a total of four distribution centres, with a cumulative area of 62,300 square metres.
Strategic oversight of the Krasny Yar and Slata chains will be carried out by a management company representing both X5 Retail Group as well as both retailers, X5 said in a statement.
The chains’ existing management teams will continue to manage their respective operations.
In October of this year, X5 Retail Group reported a 19.2% increase in revenue in the third quarter of its financial year, as well as 7.4% adjusted EBITDA margin.
© 2022 European Supermarket Magazine – your source for the latest Retail news. Article by Stephen Wynne-Jones. Click subscribe to sign up to ESM: European Supermarket Magazine.