Birobidzhan, 28 June 2024 – X5 Group, a leading Russian food retailer, has launched operations of its Pyaterochka proximity store chain in the Jewish Autonomous Region, expanding the Company’s geographic footprint to a total of 72 regions in Russia. The first two[1] stores with a total selling area of 847 sqm were opened in Birobidzhan. In the near future, Pyaterochka plans to launch three more stores, subsequently expanding its network in the region to nine stores by the end of 2024.
The ribbon-cutting ceremony was held at the store at 26A Miller St. It was attended by officials from the Government of the Jewish Autonomous Region and Pyaterochka’s management in the Far East.
The product assortment at the new stores averages up to 5,400 SKUs. Along with Pyaterochka’s private labels, the stores will feature products by local manufacturers based in the Far East and the Jewish Autonomous Region. In addition, Pyaterochka intends to sign agreements with local suppliers of fish, farm sausages, and dairy products in the near future. A total of 15 contracts will be concluded with local businesses, bringing the share of regional products to about 15% of total sales.
Pyaterochka stores in Birobidzhan have their own bakeries and coffee machines. Consumers in other regions have already fallen in love with Pyaterochka’s coffee to go and ready-to-eat meals: in 2023, the chain became the most popular place in Russian retail and the HoReCa market to buy ready-to-eat deli products.
The retail chain is actively deploying advanced technologies to further increase customer convenience and automate business processes. To that end, six self-checkout machines designed by X5 Group have been installed in Pyaterochka stores in Birobidzhan.
In early July, Birobidzhan residents will be able to use the express delivery service offering delivery from Pyaterochka stores. Customers will simply need to download Pyaterochka’s mobile app, with a 25% discount on the first order offered to new users. When launched, the service will cover two thirds of Birobidzhan, with a delivery time of 30+ minutes. The app will feature the same product prices as the chain’s stores, as well as promotional offers.
Anton Bezryadin, Executive Director of Pyaterochka’s Far East Territory division, said:
“Pyaterochka has been operating in the Far East for more than a year now and has maintained its momentum to expand its footprint. We are pleased that customers in the Jewish Autonomous Region will get a chance to know our brand, which has become a favourite for millions of Russians. We open stores in line with the chain’s modern store concept so that visitors can enjoy their convenience and cozy atmosphere, the range of ready-to-eat meals and pastry, and, of course, our low prices and social-impact initiatives. In addition, Pyaterochka’s entry into the region will contribute to the development of local manufacturers: we place great value on building partnerships with them, so that customers can find familiar brands on our shelves.”
The retail chain pays particular attention to social support. Pyaterochka stores sell socially important products, including bread, sugar and dairy, with a markup of no more than 5%. In addition, every day until 1:00 pm, Pyaterochka offers a 10% discount for pensioners who use an X5 Club loyalty card and present a pensioner ID when making their purchase.
Pyaterochka stores in Birobidzhan also feature Safety Zones: specially designated areas marked by an orange geolocation pin to guide people who are lost or disoriented. Anyone who lost their way can enter a Pyaterochka store and seek assistance from a store employee or wait at the Safety Zone until help is offered.
The first retail chain stores in the Jewish Autonomous Region employ 24 people. There are plans to open up to nine stores by the year-end, providing 108 jobs for local communities.
[1] The stores are located at the following addresses: 9/1 Miller St., Birobidzhan; 26A Miller St., Birobidzhan