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Supply Chain

Pyaterochka Expands Logistics Network In Kursk

Russian retailer X5 Group has announced that it has opened a new distribution centre for the Pyaterochka banner in the Kursk region.

The new distribution centre, spread across a floor area of more than 40,600 square metres, adds to X5 Group's logistics infrastructure in central Russia.

Highlights

The new warehouse features five storage zones dedicated to fresh products, fruit and vegetables, frozen goods, alcoholic beverages, and a dry storage facility.

Each zone is equipped with a specific temperature band best suited to keep relevant products fresh, the company added.

At full capacity, the distribution centre will supply food products to 730 Pyaterochka stores in the Kursk, Orel, Belgorod and Bryansk regions.

The logistics facility is expected to handle 3,000 tonnes of goods per day, supported by nearly 550 employees and 170 vehicles.

In the Kursk region, Pyaterochka has created more than 2,400 jobs so far.

Regional Manufacturers

The launch of the new facility will allow regional manufacturers to reduce transportation costs and expand the geography of their sales.

The logistics facility is equipped to handle products from about 1,000 suppliers at full capacity, driving up the share of local producers in the chain's regional sales.

Currently, Pyaterochka works with 17 suppliers from the Kursk region, including Kurskmakaronprom for dry goods, Kursk Milk for dairy, and Mushroom Rainbow for fruit and vegetables.

The facility in Kursk will also cater to stores previously supplied by the Orel distribution centre, which is scheduled to close because its capacity and equipment no longer meet Pyaterochka's needs.

With the opening of this new facility, the total floor space of Pyaterochka's warehouse facilities in Central Russia has exceeded 422,000 square metres.

Currently, X5 Group operates 182 Pyaterochka stores in the Kursk region, with ten more to be opened there by the end of 2021.

© 2021 European Supermarket Magazine. Article by Dayeeta Das. For more Supply Chain news, click here. Click subscribe to sign up to ESM: European Supermarket Magazine.

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