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Dec/1309

X5 to increase store count in Tyumen Province, Russia

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The grocery retailer X5 Retail Group has signed co-operation contract with the administration of Tyumen Province, according to which by the end of 2016 the company plans to construct a logistic centre, as well as to launch over 100 new stores (including franchise projects) in the region. The total investments in the co-operation projects are estimated at RUB 5bn. The state administration promised to support the retailer in realization of the plans. Currently, there are 10 of the groups Pyaterochka discounters, six Perekrestok supermarkets, one Karusel hypermarket in Tyumen, and two Pyaterochkas in Tobolsk.

Source: Retail Russia

Dec/1309

Metro Group to float 25% of Metro Cash & Carry Russia?

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The German retailer Metro Group is planning an initial public offering (IPO) for the sale of 25% of its Russian subsidiary Metro Cash & Carry on the London Stock Exchange (LSE) in spring 2014, Vedomosti has reported. The retailer is planning to use the money generated to double the number of stores in Russia. Reuters estimates the value of Metro Cash & Carry in Russia to be approximately €4bn.
Metro opened its first hypermarket in Russia in 2001 and now operates 70 cash and carry hypermarkets in 45 regions of the country. Its net revenues in 2012 were €4.1bn, a 20.4% year-on-year increase. Estimates for 2014 suggest that net revenues could grow to €5.1bn.

Source: Retail Russia

Dec/1309

Organic retailer Izbenka experiments with larger format – Russia

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Izbenka, an organic dairy food retail network, is planning to close its kiosks in favour of shops in the new VkusVill format. The VkusVill project started in the summer of 2012 as stores taking up 100-200 m2, but the new format evolved later to smaller shops taking up 60 m2 and offering only private labels. Andrey Krivenko, the owner of the business, relies on partners to provide the stores with fresh natural goods, including dairy, bakery and meat products. Each launch requires an investment of RUB 1.5m (€33,260).
In addition to the separate establishments, Izbenka kiosks also operate on the sites of large stores such as supermarkets and shopping centres. Along with its VkusVill stores, there are almost 230 locations in the network.

Source: Retail Russia

Vkuzville Izbenka

Nov/1326

Auchan to open 10-14 hypermarkets in 2014 & completes rebranding of Russian Real stores

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The French grocery retailer the Auchan Group is planning to open 10-14 new stores in Russia in 2014. So far, the contracts have been signed for the construction of three “traditional” Auchan hypermarkets, three Auchan City hypermarkets and four Nasha Raduga stores. The Nasha Raduga outlets should appear 500-600 km from Moscow, including an establishment in the Kuznetsk (Penza Province).
In addition, the company hopes to launch a new format known as Auchan Drive, announced about two years ago, which will enable customers to collect their online orders. At present, the retailer operates two online stores – in Moscow and Siberia.
Today there are 54 Auchan hypermarkets and 19 Auchan City stores in Russia, along with the Nasha Raduga stores.

The French grocery retailer also completed the rebranding procedures at 16 Real stores in Russia, acquired from the German Metro Group. Overall, the project required an investments of €16m.
The chain of over 50 Real hypermarkets in Eastern and Central Europe was acquired by Auchan from Metro Group in November 2012, and in Russia the transaction was completed
in April this year.

Source: Russia Retail

Nov/1326

X5 Retail Group in Russia reports increase in net profit of 477% in Q3 2013

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The grocery retailer X5 Retail Group has reported a net profit of €51.8m in Q3 2013 and €109.1m between January and September 2013, increases of 476.9% and 41.8% correspondingly. On 30th of September 2013 X5’s total debt reached €2.78bn. Between January and September 2013, the group generated net revenues of RUB 382.9bn (€8.78bn), a 7.5% year-on-year increase.
Overall, on 30 September 2013 the retailer had a store count of 4,187, including 3,568 discounters (the Pyaterochka brand), 382 supermarkets (Perekrestok), 78 hypermarkets (Karusel) and 159 convenience stores (various brands).

Source: Russia Retail

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