EXCLUSIVEBRANDSOURCING RETAILER/WHOLESALER ...

Principal Business: X5 Retail Group is Russia’s largest food retailer, overseeing 1,372 retail stores
in three formats: the Pyaterochka soft discount chain (1,039 stores), the Perekrestok supermarkets
(275 stores), and the re-launched Karusel hypermarket chain (58 stores). In addition, there are
some 620 franchised stores in the soft discount and supermarket formats.
EB Identities: Red Price (price leader), Five Pluses (mainstream products), and a premium line
(under development)
EB skus: 2,337+
Profile: Established in the mid-1990s, the Perekrestok and Pyaterochka banners were merged in
May 2006. The company operates as a Dutch public liability firm, traded on the London Stock
Exchange: FIVE. Its three banners sell mostly food items. Growth has been attributed to new
store openings and more recently also acquisitions. Bottom line, X5 Retail Group is the largest
food retailer in Russia, commanding a 6% market share (the top 10 retailers command only 20%
market share of Russia’s retail sales). Calendar 2011 showed revenues up 37% to $15.5 billion,
based on US dollars (up 33% based on Russian roubles). Net profits jumped by 11% to $302.2
million. The Kopeyka retail chain of 660 stores, acquired in December 2010, has since been
converted over to X5 store formats: 607 as Pyaterochka soft discounters and 9 as Perekrestok
supermarkets, while 44 were closed). In 2011, the Group purchased the remaining 40% shares of
Retail Express Ltd., thus now owning 100%. Also during the year, the Group acquired 000 Pic, a
group of Narodny banner stores as well as the Ostrof Invest chain, owned by ZAO. The Group
also is putting more emphasis behind its private labels, targeting 50% of product assortment in its
soft discount chain (its principal growth vehicle), 30% of the assortment in the supermarket chain,
and 10% of the assortment in the hypermarket chain. Early in 2012, the Group launched E5.RU,
an online retail channel, offering some 370,000 skus in numerous product categories. UPDATE:
Calendar 2012, up through the nine months ending in September, showed overall Group sales off
by 0.1%, impacted mostly by its hypermarket chain, those sales down by 15.9% for the period. Its
overall store count totaled 3,472 company-owned and 404 franchised stores. The breakdown:2,936
soft discounters, 350 supermarkets, 76 hypermarkets, and 110 convenience stores.
Procurement Contacts: Dmitry Ishevskly, Supply Chain Director