Russia’s X5 Retail Group has reported net sales of RUB 1,286,870 million in 2017, representing growth of 25.5% year on year.
The retailer says that this increase was driven by a 5.4% gain in like-for-like sales, as well as a 20.1% growth contribution from new stores.
A record 2,934 new stores were added to the group's portfolio in 2017, and it opened its 12,000th store in December.
“X5 delivered strong growth in 2017 and showed we were able to achieve sustainable performance even in what continues to be a challenging macro environment,” said Igor Shekhterman, its chief executive.
“X5, once again, expanded at the fastest pace among its public peers in Russia, and LFL traffic improved relative to the previous year, reaching 3% annual growth in 2017, compared to 2.5% growth in 2016,” added Shekhterman.
“For the first time in the company’s history, we added more than one million square metres of selling space,” he said.
X5 reported sales growth across its three major store formats: Pyaterochka proximity stores (+29%), Perekrestok supermarkets (+20.3%) and Karusel hypermarkets (+6.9%).
Sales at the retailer’s Express convenience stores fell by 11.6% year on year, however, in October, the group announced plans to sell these stores in Moscow. It added that the convenience outlets account for less than 1% of the group’s revenue, and it plans to concentrate on its larger store formats going forward.
As part of the group’s ongoing expansion plans, it opened 2,934 new stores – primarily Pyaterochka outlets – refurbished 350 stores, and launched ten new distribution centres last year.
The retailer says that it plans to continue this growth and expansion in 2018.
“Looking ahead to 2018 and beyond, we remain committed to our core strategic goals and will continue on the path of rapid, efficient and profitable growth, with the aim of sustainably occupying the position of Russia’s food-retail market leader,” said Shekhterman.
© 2018 European Supermarket Magazine – your source for the latest retail news. Article by Sarah Harford. Click subscribe to sign up to ESM: The European Supermarket Magazine.