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X5 launched an online store, Perekrestok.ru, in April 2017, to service the Moscow area. Now it plans to open fulfilment centres for the online store, otherwise known as ‘dark stores’.

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X5 Retail Group has opened a new distribution centre (DC) in the Siberian Federal District, Russia.

17,000 sq m facility

The 17,000 sq m DC is located in Novosibirsk, in the south of the Siberian Federal District and is X5’s first in the region. It will supply all 186 Pyaterochka stores in the Kemerovo, Novosibirsk, Omsk and Altai regions. The temperature-controlled facility will become the focal point for local producers, which provide 25% of Pyaterochka’s product range in the region.

Sustaining the Pyaterochka expansion

In the third quarter of 2017, X5 opened three new distribution centres in Moscow and two of the eastern regions to support Pyaterochka’s dynamic store expansion. X5 will continue to modernise the banner’s store refurbishment to fit its regional supermarket model and sustain an ongoing rationalisation programme with some closures of Pyaterochka.

X5 Retail Group has announced plans in implementing its bold growth strategy across Russia.

Pyaterochka to focus on local

X5 and Centrosoyuz (the Central Union of Consumer Societies of the Russian Federation) have unveiled plans to launch up to 5,000 Pyaterochka fresh food shop-in-shops by 2021 to expand on Pyaterochka's fresh food offer. The retail units will sell goods from local farmers and consumer cooperatives and focus on the fresh food needs of the local customer.

Online Perekrestok rolled out

X5 has also announced the expansion of its Perekrestok online service pilot scheme with the potential to implement a click & collect service in the future. The service will deliver in south-west Moscow and some neighbouring towns in the Moscow Region for a minimum order of RUB 2,000. Perekrestok uses a specially built hybrid store that combines features of a regular supermarket and a dark store that allows the inclusion of its entire product range.

X5 Retail Group has launched GoCargo, a solution for booking cargo transportation services online.

10,000 orders a day

The system matches cargo and transport by a number of criteria, including volume, weight, temperature conditions, shipping dates, and loading and parking points. GoCargo is able to process up to 10,000 orders a day, and is fully integrated with X5’s ERP infrastructure, making the process streamlined and cutting out human error.

Rolling out to all networks

By the end of 2017, GoCargo will have been rolled out to all of the retailer’s networks and will be used for all third party shipping orders. In future years, X5 plans to make GoCargo available to other logistics companies.

Cutting costs

Timur Parshikov, X5’s Director of Transport, commented: “GoCargo will enable X5 to manage transportation more efficiently by optimising third-party transportation services and cutting logistics costs.”

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05/10/2016
An essential summary of supply chain priorities, latest network developments, and other key statistics for X5 Retail Group.

The ‘last mile’ is becoming an increasingly competitive place, as the food industry and disruptors continue to create solutions that make online shopping even more convenient.

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