Fix Price unveils its largest distribution centre

Fix Price unveils its largest distribution centre

Located in Krasnodar Krai, the all-new distribution centre will help drive the retail chain's expansion in Russia's southern regions

Moscow, 29 September 2021 - Fix Price (LSE and MOEX: FIXP), one of the leading variety value retailers globally and the largest in Russia, announces the opening of a new distribution centre (DC) with a total area of 68,000 sq m in the Dinskoy District of Krasnodar Krai. The newly opened logistics hub is the retailer's largest facility, and, according to Knight Frank, it was the biggest BTS sale in Russia over the last year and a half (2020 - 1H 2021). From now untill the end of 2025 the company plans to invest approximately RUB 15-16 billion into logistics development and to double its distribution centres' space.

The new DC will service eleven Russian regions: Krasnodar Krai, the Astrakhan and Rostov regions, Stavropol Krai, and the republics of Adygeya, Kalmykia, Kabardino-Balkaria, Karachay-Cherkessia, Ingushetia, Dagestan and North Ossetia-Alania. The facility will also operate cross-border, supplying products to Georgia. The distribution centre is in full operation - the first batch of goods has already left the facility.

Fix Price CEO Dmitry Kirsanov said:

Konstantin Fomichenko, Regional Director, Head of Warehouses, Industrial and Land Department at Knight Frank - the consultancy engaged to support the DC construction transaction, commented:

The distribution centre is a built-to-suit project tailored to Fix Price's needs. It maintains an average temperature of 18-25 °C to safely store Fix Price's product mix, which does not include perishable goods. The DC's cross-docking process enhances the efficiency of its operations by separating inbound and outbound areas. Goods arrive in semi-trailer trucks and are then stacked into pallets to be shipped out by medium-duty trucks. The facility has a total of 300 parking spaces for trucks and is estimated to be able to handle 45 semi-trailer trucks and 75 medium-duty trucks per day.

The new distribution centre will have around 400 employees, including office staff, warehouse workers, pickers, engineers, quality control officers, etc. They will benefit from various incentive programmes, including bonuses for working in summer and for exceeding targets, welcome payments for new hires, as well as convenient corporate transport and free meals. To minimise the physical workload, all warehouse employees will have modern electric pallet trucks to facilitate pallet handling.

FIX PRICE DISTRIBUTION CENTRES

(September 2021)

FIX PRICE STORES IN RUSSIA

(1H 2021)

About the Company

Fix Price (LSE and MOEX: FIXP), one of the leading variety value retailers globally and the largest in Russia, has been helping its customers save money every day since 2007. Fix Price offers its customers a unique and frequently updated product assortment of non-food goods, personal care and household products and food items at low fixed price points.

Today there are more than 4,700 Fix Price stores in Russia and neighbouring countries, all of them stocking approximately 1,800 SKUs across around 20 product categories. As well as its own private brands, Fix Price sells products from leading global names and smaller local suppliers.

In 2020, the Company recorded revenue of RUB 190.1 billion, EBITDA of RUB 36.8 billion and net profit of RUB 17.6 billion, in accordance with IFRS.

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