X5 Retail Group, Russia’s largest food retailer by sales, expects gross sales to exceed RUR 500 billion (inclusive of VAT) representing top-line growth of approx. 40 per cent. “We expect this increase to be driven by organic RUR net sales growth in the low 20 per cent range on a higher base compared to 2010, with the remainder contributed by the Kopeyka acquisition,” said the company.
The company plans to open 540 stores next year, including 500 ‘discounter’ format.
Lev Khasis, CEO, X5 Retail Group, said, “Execution of X5’s 2010 growth plans has been strong and disciplined. We will end the year with a record number of new store openings while staying below our CapEx limit. We are on track to deliver on X5’s 2010 outlook for topline growth in the low 20 per cent range, supported by a recovery in consumer spending and trading-up trends in the fourth quarter.”
“We believe this is the right time to further accelerate growth. X5 recently completed the acquisition of Kopeyka, adding to opportunities for our industry-leading discounter format and complementing our core organic growth strategy. Today we are proud to announce the company’s 2011 outlook, with plans to significantly increase the pace of organic expansion with some 540 new store openings. This together with the Kopeyka acquisition should enable X5 to deliver in excess of RUR 500 billion in gross sales, representing topline growth of approximately 40 per cent.”
– IndiaRetailing Bureau