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MarketScreener Homepage  >  Equities  >  London Stock Exchange  >  X5 Retail Group    FIVE

X5 RETAIL GROUP

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X5 Retail : opens new logistics facility in Tatarstan

08/26/2020 | 04:11am EST

Kazan, 26 August 2020 - X5 Retail Group, a leading Russian food retailer that operates the Pyaterochka, Perekrestok, and Karusel retail chains, announces the expansion of its logistics infrastructure in the Volga region and the opening of a Pyaterochka distribution centre (DC) in the Republic of Tatarstan.

With a total floor area of 18,000 sq m, the Yelabuga DC features four storage zones for fresh products, fruits and vegetables, dry goods and alcoholic beverages. Each zone has a specific temperature band that is best suited to keep relevant products fresh.

Once it reaches design capacity, the new DC will supply food products to 600 Pyaterochka stores in 300 localities across the Republics of Tatarstan and Udmurtia. The logistics facility is expected to process 1,500 tonnes of goods per day, with its seamless operation supported by more than 250 employees and some 100 vehicles. Overall, Pyaterochka has generated over 10,700 jobs in the Republic of Tatarstan.

The launch of the new DC will enable Volga region food producers not only to reduce their transportation costs, but also to expand the geography of their sales. At full capacity, the logistics facility will be able to handle about 500 suppliers, further increasing the share of Tatarstan producers in the chain's regional sales beyond the current level of over 30%. Today, Pyaterochka retail chain works with 88 local suppliers, of which 18 were added to the supplier list in 2019.

The Yelabuga DC is the second advanced logistics facility opened by Pyaterochka in the Republic of Tatarstan. In November 2019, the Kazan DC was opened in Zelenodolsk, bringing the total floor area of Pyaterochka's warehouse facilities in the region to over 57,000 sq m. Today, the Republic of Tatarstan has more than 700 Pyaterochkas, including 24 stores that opened this year.

The opening ceremony was attended by Alexey Pesoshin, Prime Minister of the Republic of Tatarstan, Sergei Goncharov, General Director of Pyaterochka, and executives of suppliers from the Volga Federal District invited by X5.

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Disclaimer

X5 Retail Group NV published this content on 26 August 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 26 August 2020 08:11:02 UTC


© Publicnow 2020
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