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Supply Chain

Russia's X5 Retail Group Expands Logistics Capability With Orenburg DC

Russian chain X5 Retail Group has advanced its logistics infrastructure in the Southern Ural region of the country with the opening of a new distribution centre in Orenburg, which was first opened in November 2016.

The facility, situated near the boundary of Europe and Asia, will span 19,000 square metres and will support the Pyaterochka chain in the Orenburg region, which currently operates more than 220 stores. In addition, it will serve 129 stores in the Republic of Bashkortostan (located between the Volga River and the Ural Mountains), beginning in April.

It boasts four distinct temperature zones, allowing it to store almost any type of good.

As the Pyaterochka banner continues to grow, the company said that its new centre will ensure the supply and freshness of goods. It will also decrease transport costs and be a 'focal point' for local producers.

The distribution centre has now reached full capacity, and is able to accommodate products from more than 300 suppliers.

The development of its logistics capability is a strategic priority for the Russian retailer over the next several years.

For the second year in a row, X5 Retail Group led the market in openings of new distribution centres, it said. In 2016, it opened seven new facilities, for a total of 212,000 square metres.

The year prior, it opened six such centres, equalling 142,000 square metres.

© 2017 European Supermarket Magazine – your source for the latest retail news. Article by Karen Henderson. To subscribe to ESM: The European Supermarket Magazine, click here.

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