Moscow, 13 March 2024 – X5 Group (“X5” or the “Company”, LSE and MOEX ticker: FIVE), which operates the Pyaterochka, Perekrestok and Chizhik retail chains, has launched a series of robotics projects for its distribution centres. At the initial stage, the Company opened an innovative laboratory serving as a testing ground at one of its distribution centres (DCs) to test robotic applications. X5 expects its retail chains to be able to start deploying robotics solutions to partially automate warehouse processes as early as September or October 2024.
The testing-ground laboratory was launched at X5’s Podolsk-based DC, which is currently testing two types of robots: autonomous mobile robots (AMRs) and forklift mobile robots (FMRs), which move around without human supervision and can perform various tasks depending on their programming. The use of various DC automation solutions will unlock opportunities to automatise key business processes that currently consume significant staff resources. These include moving and placing goods in storage areas, replenishing pick modules, and picking products for orders and moving them to dispatch areas. In the future, the deployment of robotics solutions will enable headcount optimisation by an average of up to 20% at each DC.
By combining the testing-ground laboratory’s capabilities and specialised software, X5 can simulate and analyse the full range of scenarios for how robots could interact with physical objects – the site environment covers the variety of goods in the warehouse, their dimensions, as well as storage and packing conditions. X5 experts are preparing to launch a digital simulation centre of excellence for the Company’s DCs.
Vladimir Salakhutdinov, Director of Strategy and Business Development at X5 Group, said:
“The rising costs of line staff have prompted us to look differently at logistics robotics projects, which until recently did not seem like a good investment. Today, we see them as real opportunities to improve business efficiency, and we are shifting our priorities towards replacing both line and office jobs with modern technology solutions. Many projects in this area require a long-term strategic commitment, but we are confident that making investments today in robotic automation and artificial intelligence solutions is the key to unlocking long-term, sustained success in the future.”
The Company plans to build a fully robotised DC in the next few years and to automate some processes at existing warehouses as early as this year. The implementation of X5 Group’s robotics strategy will enable the Company to optimise logistics processes, increase labour productivity, reduce infrastructure costs, and improve the quality of customer service.