Perekrestok updates brand and starts roll-out of new concept for 25th anniversary

Moscow, 20 February 2020 – X5 Retail Group ("X5" or the "Company"), a leading Russian food retailer (LSE and MOEX ticker: "FIVE"), announces that the Perekrestok supermarket format has begun the roll-out of its new store concept. Among the highlights of the new concept are a new logo, updated interior and exterior designs, and a selection of new services offered in-store. Perekrestok will adopt the new concept for all of its new standard-size supermarkets and for planned refurbishments. The format plans to open more than 100 and to refurbish around 30 stores this year.

The new Perekrestok concept is designed to meet the needs of today's customers, including frequent purchases of ready-to-eat and ready-to-go products. About 50% of the selling space will be dedicated to fresh categories (fruits, vegetables, dairy products, cheese, deli meats, as well as fresh fish and meat) or salad bars, bakeries and cafés. This is what customers will see when they enter the supermarket. A special area will be focused on the health foods category, which was expanded by adding products from Perekrestok's Green Line private label.

In order to facilitate a smooth shopping experience, new and refurbished stores with a floor area of over 800 sq m will offer two paths for customers, one shorter and the other one longer. The first one takes shoppers through the fresh produce zone, salad bar, ready-to-eat offerings, cafe, and bakery. This enables people who want to pop in to grab some ready-made or fresh foods can be out of the store in no time. The long route takes the customer along the outer areas of the store that sell fish, meat, deli, dairy, grocery, beverages and associated goods. By smartly positioning "magnet" categories that enjoy the most demand, the store is able to eliminate grey zones.

Before launching the roll-out, the new Perekrestok concept was piloted in a number of supermarkets. The first was opened last June on Tallinskaya St in Moscow. All of the pilot stores outperformed sales forecasts, enjoyed positive feedback from customers and received high net promoter scores (NPS).

As part of the new concept, Perekrestok has updated its brand ID. The retail chain has kept the clover in its logo, but replaced hollow petal outlines with a solid fill, changed the logo font, and added dots above Russian letter "ё". The new design and concept are intended to celebrate the chain's 25th anniversary this year. Hence, the name of the new concept: Perekrestok25.

"Perekrestok has retained its leadership in the Russian supermarket segment for years, which means that our CVP remains popular with consumers. The chain is happy to evolve and grow in order to maintain its leadership, retain customer interest and improve its services. We aimed to design an 'emotive' store with a new and enjoyable shopping space that remains true to the current brand's interior design," said Vladislav Kurbatov, General Director of Perekrestok.​

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