X5 Retail Group N.V., Russia’s largest retailer in terms of sales, announces today that it has launched a new retail format operating under the brand name “Pyaterochka-Maxi.”
Pyaterochka-Maxi is an economy-class hypermarket focused on sales of food and non-food items to retail and wholesale customers. The new format meets the needs of small enterprises (HoReCa) and other B2B customers. The first Pyaterochka-Maxi opened on November 18 in Syzran (Samara Region) in the Avtobus shopping center.
The Pyaterochka-Maxi store has selling space of 3,500 sq.m., offers 7,000 SKUs and is expected to serve thousands of customers a day. Store layout, infrastructure and simpler assortment are geared both to retail and B2B wholesale purchasers. High-rise shelving, wide aisles, absence of product displays and booths provide clear passage to 18 cashiers, and there is a special loading dock for large bulk purchases. The stor parking can accommodate 200-250 vehicles in addition to special minibus service.
The main competitive advantage of Pyaterochka-Maxi is price leadership. It aims to offer the best prices by monitoring all competitors and meeting or beating them on every item. Wholesale bulk purchases will be entitled to an additional volume discount of some 10% to 15%.
“Pyaterochka-Maxi is a format specially developed for Russian regions including small cities with population of 50 thousand or more. This new economy-class hypermarket format will enable X5 toenter new markets and reach low income customers that are under-served by the competition. We are excited about the launch of Pyaterochka-Maxi and are confident that over time it will be as popular as Pyaterochka,” shared Lev Khasis, CEO of X5 Retail Group.
X5 Retail Group N.V. is Russia’s largest retailer in terms of sales. The company was created as a result of a merger between Pyaterochka (soft discounter chain) and Perekrestok (supermarket chain) on May 18, 2006. In June 2008, X5 acquired Karusel hypermarket chain and substantially strengthened its position in hypermarket format.
As of September 30, 2010, X5 had 1,630 Company-managed stores located in Moscow, St. Petersburg and other regions of European Russia, Urals and Ukraine, including 1,232 soft discount stores, 289 supermarkets, 65 hypermarkets and 44 convenience stores.
– IndiaRetailing Bureau