19th Mar 2009 09:13
X5 RETAIL GrouP strengthens price leadership
pyaterochka will offer the lowest price on every item
Amsterdam, 19 March 2008 - X5 Retail Group N.V., Russia's largest retailer in terms of sales (LSE ticker: "FIVE"), today announced a major price initiative at all Pyaterochka stores.
"Everything on Pyaterochka's shelves will now be offered at the lowest price in the market," saidLev Khasis, Chief Executive Officer of X5 Retail Group.
Pyaterochka has built one of Russia's most successful consumer brands thanks to its "lowest price" concept for basic staples, which account for approximately 40% of discounters' sales and about 20% of the assortment. Rolling back prices on the entire assortment will encourage customers to spend more at our stores. In addition, X5 will rationalize Pyaterochka's assortment to give priority to category leaders and ensure efficient utilization of shelf space.
Lev Khasis added: "Pyaterochka has been winning customers looking for value in current conditions. We now see further opportunities for gaining market share by asserting our unbeatable price leadership even more clearly. We expect this strategy to drive Pyaterochka's like-for-like sales growth, while at the same time, we will leverage our low cost operations and advantages in purchasing power and logistics to manage margins."
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For further details please contact |
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Anna Kareva IR Director Tel.: +7 (495) 792-3511 e-mail: [email protected] |
Svetlana Vitkovskaya Head of PR Department Tel.: +7 (495) 662-8888, ext. 31 140 e-mail: [email protected] |
Note to Editors:
X5 Retail Group
X5 Retail Group N.V. is Russia's largest retailer in terms of sales. The Company was created as a result of a merger between Pyaterochka (soft discounter chain) and Perekrestok (supermarket chain) on 18 May 2006. In June 2008, X5 acquired Karusel hypermarket chain and substantially strengthened its position in hypermarket format.
As at 31 December 2008, X5 had 1,101 Company-managed stores located in Moscow, St. Petersburg and other regions of European Russia, Urals and Ukraine, including 848 soft discount stores, 207 supermarkets and 46 hypermarkets.
As at 31 December 2008, X5's franchisees operated 607 stores across Russia.
Including Karusel on pro-forma basis the Company's net sales for the first nine months of 2008 totaled USD 6,516 mln, gross profit amounted to USD 1,674 mln, EBITDA - to USD 578 mln and net income - to USD 138 mln.
For the full year 2008, X5 Retail Group N.V.'s net retail sales including acquired Karusel stores on pro-forma basis totaled USD 8,844 mln.
X5 Shareholder structure is as follows: Alfa Group - 47.9%, founders of Pyaterochka - 23.1%, X5 Management - 1.9%, treasury shares - 0.1%, free float - 27.0%.
Forward looking statements:
This announcement includes statements that are, or may be deemed to be, "forward-looking statements". These forward-looking statements can be identified by the fact that they do not only relate to historical or current events. Forward-looking statements often use words such as" anticipate", "target", "expect", "estimate", "intend", "expected", "plan", "goal" believe", or other words of similar meaning.
By their nature, forward-looking statements involve risk and uncertainty because they relate to future events and circumstances, a number of which are beyond X5 Retail Group N.V.'s control. As a result, actual future results may differ materially from the plans, goals and expectations set out in these forward-looking statements.
Any forward-looking statements made by or on behalf of X5 Retail Group N.V. speak only as at the date of this announcement. Save as required by any applicable laws or regulations, X5 Retail Group N.V. undertakes no obligation publicly to release the results of any revisions to any forward-looking statements in this document that may occur due to any change in its expectations or to reflect events or circumstances after the date of this document.
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