Ulan-Ude, 31 October 2024 – X5 Group, a leading Russian food retailer, has launched operations of its Pyaterochka proximity store chain in the Republic of Buryatia, expanding the Company’s geographic footprint to a total of 73 regions in Russia.
The first two stores[1] with a total selling area of about 600 sqm were opened in Ulan-Ude. In addition to the new stores, locals will be able to enjoy the Pyaterochka Delivery service offering express delivery from stores (30+ minutes).
The new stores offer a wide range of FMCG products, counting more than 5,500 SKUs. The chain has already engaged 15 Buryatian enterprises, focusing mainly on the fresh products category, where their share has almost reached 15%. Local Pyaterochka stores already offer their customers attractive products from a range of local producers such as KARAVAY, Sandakov’s Sadko, Buryatmyasprom, and Eco Food. Such products bear “Made in Buryatia” special tags. While it plans to ramp up the share of local product sourcing going forward, the chain also aims to localise the production of its private labels through strategic partnerships with Buryatian suppliers.
Developing private labels and ready-to-eat meals is a strategic priority for the chain. In 2024, private labels accounted for 24% of Pyaterochka’s retail sales. The product mix of Pyaterochka stores in Buryatia also includes over 100 ready-to-eat SKUs. Additionally, each store has an in-house bakery, offering up to 50 SKUs of freshly baked products several times daily.
“We continue to actively consolidate our positions in the country’s east by opening the first two Pyaterochka stores in the Republic of Buryatia today. I am confident that our growth in the region will not only positively impact the retail market but also strengthen our partnerships with regional authorities and local producers in this critical area, all while supplying people with high-quality products at affordable prices,” said Anton Astafyev, Executive Director of the Eastern territory at Pyaterochka.
Social benefits offered by the chain include a 10% discount for pensioners (in the morning hours until 1:00 pm) across all local stores as well as Family Wednesdays, when parents and foster parents of children under 13 receive 20% cashback on purchases of children’s goods in the form of bonus points in the X5 Club loyalty programme.
X5’s plans include opening 12 more Pyaterochka stores by the year-end, generating around 140 additional jobs for local residents.
[1] The stores are located at 81 Smolina St. and 24 Gagarina St.