The Company’s small-format convenience stores operating under the Perekrestok Express brand in Moscow will be put on sale.
A leading Russian food retailer, X5 Retail Group, proposes to focus on its three major formats: Pyaterochka proximity stores, Perekrestok supermarkets and Karusel hypermarkets. It has decided to put up for sale the Company's small-format convenience stores operating under the Perekrestok Express brand, which accounts for less than 1% of X5's revenue. Renaissance Capital will assist with transaction of the deal.
"Convenience stores like those that Perekrestok Express operates in Moscow, which have a selling space of up to 200 sq m, certainly have potential,” said Igor Shekhterman, CEO, X5 Retail Group. “However, they represent a fairly narrow segment of Russia's modern food retail market, in which proximity stores, supermarkets and hypermarkets occupy more than a 90% share. With our market share in these formats steadily growing, we have decided to focus our full attention on continuing to develop the customer value propositions of Pyaterochka, Perekrestok and Karusel, including in Moscow."
In addition to improving the quality of its store portfolio in Moscow, this year X5 has successfully bolstered its major retail formats, for which it leased over 100 premises. PWKD19102017