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Supply Chain

X5 Expands Logistics Infrastructure With New Facility In Tatarstan

Russia’s X5 Retail Group has announced that it has opened a new distribution centre in the Republic of Tatarstan in the Volga region.

The 18,000 square metre facility will supply to around 600 Pyaterochka stores in 300 localities across Tatarstan and Udmurtia.

The inauguration ceremony was attended by the prime minister of the Republic of Tatarstan, Alexey Pesoshin; general director of Pyaterochka, Sergei Goncharov; and executives of suppliers from the Volga Federal District, the company said.

Highlights

The distribution centre is expected to process around 1,500 tonnes of goods per day, with the help of more than 250 employees and around 100 vehicles.

It features four storage zones with specific temperature bands for fresh products, fruit and vegetables, dry goods and alcoholic beverages.

The facility will allow food producers in the Volga region to reduce their transportation costs and sell their products to more areas.

At full capacity, it will be able to handle about 500 suppliers, further increasing the share of Tatarstan producers in the chain's regional sales beyond the current level of over 30%, the retailer added.

Presently, Pyaterochka retail chain works with 88 local suppliers, of which 18 were added to the supplier list in 2019.

Advanced Logistics Facility

The distribution centre is Pyaterochka's second advanced logistics facility in the Republic of Tatarstan.

In November 2019, the retailer opened a distribution centre in Kazan, taking the total floor area of Pyaterochka's warehouse facilities in the region to over 57,000 square metres.

Currently, the Republic of Tatarstan has more than 700 Pyaterochka stores, including 24 new stores that opened this year.

The X5 Retail Group operates the Pyaterochka, Perekrestok, and Karusel retail chains in Russia.

© 2020 European Supermarket Magazine – your source for the latest retail news. Article by Dayeeta Das. Click subscribe to sign up to ESM: The European Supermarket Magazine.

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