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Technology

X5 Emerges As Russia's Top E-Grocery Company In 2020

X5 Retail Group has emerged on top of the Russian online food retail segment in 2020 with a gross merchandise value (GMV) of RUB21.9 billion (€240 million), according to data from Infoline.

This comprises RUB15.0 billion (€170 million) from the online hypermarket Vprok and RUB6.9 billion (€78 million) from express delivery services from X5's Pyaterochka and Perekrestok stores, as well as the express delivery aggregator Okolo, launched in Q3 2020.

In 2020, the company saw a 347% year-on-year increase in online GMV.

The company fulfilled 7.9 million e-grocery orders received via its proprietary online and mobile platforms, up from 1.4 million in FY 2019.

'The Top Position'

Igor Shekhterman, CEO of X5 Retail Group, commented, "Today, X5 Retail Group holds the top position in the highly competitive and rapidly growing Russian e-grocery market.

"We are pleased with our results and the significant growth we have achieved over the past year. I am confident that we are moving in the right direction."

The annual turnover for the entire e-grocery segment in Russia amounted to RUB155 billion (€1.7 billion) in 2020, increasing by 3.6 times and implying a 13% market share for X5, the retailer said, citing data from Infoline.

Digital sales accounted for 1.0% of X5's total sales and 2.2% of sales in Moscow and the Moscow region during the financial year.

Transformation Plans

Shekhterman added, "This year we will start to transform our online hypermarket Vprok into an FMCG marketplace, which entails a significant expansion of its assortment and geographical coverage. Thanks to the successful development of our logistics project 5Post, the widened assortment of the Vprok marketplace will be available in most regions of Russia.

"In Q1 2021, we will also start connecting external partners to our express delivery aggregator Okolo, which has already seen fast growth during the pilot testing. Our express delivery operations from Pyaterochka and Perekrestok stores will also expand both in regions where we already offer it and also into new regions where X5 stores operate."

In Q4 2020 and January 2021, the share of X5's digital business in Moscow and the Moscow region reached 3.5% and 3.8%, respectively, the group added.

The retailer continued to witness strong demand for e-grocery services in January and February of this year.

So far, the combined number of daily orders for all delivery platforms on peak weekend periods in February exceeded 67,000.

Presently, the company offers digital services in 21 regions of Russia.

© 2021 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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