Pyaterochka presents new concept

​Moscow, 20 September 2019 – X5 Retail Group N.V. ("X5" or "the Company"), a leading Russian food retailer (LSE and MOEX ticker: "FIVE"), announces the opening of the first new-concept Pyaterochka store. The 360 sq m Pyaterochka with a product range of around 5,000 SKUs is located in Malaya Filyovskaya Street 14/2, Moscow.

The new concept was built using the latest trends in interior architecture and design, as well as the evolution of consumer expectations since the banner's last update five years ago. At the same time, the store remains focused on low prices. X5 started reshaping its Pyaterochka concept a year ago, with the first few stores launched this spring to pilot new elements. In early September 2019 the Company finalised the new concept for launch.

"The new concept builds on our vision of what today's proximity store should be: designed to make the lives of those who live and work nearby better and easier. We hope that the store's ergonomic and comfortable interior design and architecture, coupled with the improved quality of fresh products at invariably low prices will serve to create a pleasant atmosphere and ensure a great customer experience," said Sergei Goncharov, General Director of Pyaterochka.

The store also boasts an upgraded product range, with a special focus on the fresh category. The new Pyaterochka will offer almost twice as many fresh products in a selling area of around 150 sq m, which is about half of the sales floor. Vegetables, fruits and some of the perishable items are laid out in the dedicated fresh zone. On top of that, the rebranded Pyaterochka sells a wide assortment of foods to go and ready-to-eat meals (more than 80 SKUs) and has a special area where customers can have coffee or fresh orange juice and charge their gadgets. An in-house bakery made it possible to expand the offering of bread and pastry to 40 SKUs, which are showcased right at the store's centre.

The new concept features interior and exterior designs in predominantly warm colours and natural materials, simplified navigation and a lighting system that combines spotlights installed in certain sections such as vegetables and fruit and soft lighting in the check-out area for a cosy atmosphere. The selling space planning and navigation seek to provide the utmost comfort and take into account key customer needs and shopping goals. For instance, one can quickly shop for fresh or ready-to-eat foods without roaming the entire store, as these goods are available right at the entrance. By contrast, goods for stock-up shopping are placed along the store's perimeter in related groups. The new concept Pyaterochka also boasts a seasonal area where goods are replaced once a fortnight according to the season, approaching holidays, etc., while an electronic shelf labelling system and five self-checkout machines will improve efficiency and service. The staff facilities have also been made more comfortable and ergonomic.

As part of its sustainable development strategy, Pyaterochka has been actively piloting various environmental initiatives. In particular, the new store is the first to offer its customers shopping baskets from recycled plastics and reusable bags. It also has installed reverse vending machines to collect plastics and aluminium containers for recycling.

By the end of this year, the chain plans to launch six more rebranded stores in Moscow and the Moscow region, and aims to streamline the supply of new materials and equipment. From 2020, the new concept will be rolled out to all new and refurbished stores.​

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