Russian retail group X5 Retail has announced plans to sell its convenience-format stores under the Perekrestok Express banner in Moscow.
The retailer says that Perekrestok Express currently accounts for less than 1% of the group's revenue, and it now plans to concentrate on its three major formats: Pyaterochka proximity stores, Perekrestok supermarkets, and Karusel hypermarkets.
"Convenience stores like those that Perekrestok Express operates in Moscow, which have a selling space of up to 200 square metres, certainly have potential," said Igor Shekhterman, CEO of X5 Retail Group.
"However, they represent a fairly narrow segment of Russia's modern food-retail market, in which proximity stores, supermarkets and hypermarkets occupy more than a 90% share."
X5 says that it has successfully bolstered its major retail formats this year, while improving the quality of its store portfolio in Moscow.
Last week, the group posted a 24.9% increase in turnover for the third quarter of the year, with sales totalling RUB 317,131 million.
This growth was driven by the Pyaterochka chain (+28.8%), as well as Perekrestok (+18.1%) and Karusel (+3.8%). However, the retailer's Express convenience stores saw sales decline by 13.7%.
© 2017 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.