X5 Retail Group NV, Russia’s largest retailer in terms of sales, has announced its retail sales and operational performance for the second quarter and first half of 2010.
For the second quarter, net retail sales grew 26 per cent year-on-year (y-o-y) in dollar terms to $2,368 million. For the first half of 2010, the net retail sales increased 31 per cent y-o-y in dollar terms to $5,172 million.
The company also added 73 stores, on net basis, in the second quarter, while 100 stores were added on net basis in H1, 2010. There was a net addition of 29,000 sq.m of selling space for discounters, supermarkets and hypermarkets in Q2, 2010, while in H1, 2010, there was a net addition of 51,000 sq.m of selling space for discounters, supermarkets and hypermarkets.
Discounters delivered the best performance of any industry competitor, in terms of sales growth, LFL sales and sales per sq.m. Strong LFL growth of 11 per cent was achieved in Q2, 2010 amid the high base of the last year, when discounters demonstrated record 18 per cent LFL from pre-crisis Q2, 2008 to crisis Q2, 2009. LFL performance in Q2, 2010 benefited from a stronger contribution from the regions as discounter stores delivered 16 per cent growth on increased local market share and success at winning customers versus competitors.
Lev Khasis, X5 Retail Group CEO, said, “We are pleased that X5’s discounters once again delivered the strongest performance in the format. Double-digit LFL growth of 11 per cent amid drastically lower food inflation exceeded our expectations, especially when compared to the strong second quarter last year driven by the tremendous success of Pyaterochka’s new pricing policy. Discounters also delivered commendable LFL sales growth of 16 per cent in the regions in Q2, 2010 as Pyaterochka made significant progress in attracting consumers outside of Moscow and St. Petersburg.”
During the second quarter, X5 also converted one Perekrestok supermarket to a Pyaterochka discounter.
As on June 30, 2010, X5 operated 1,514 stores, including 1,135 soft discounters, 275 supermarkets, 62 hypermarkets and 42 convenience stores.
Meanwhile, X5 Retail Group has announced that its chief financial officer (CFO) Evgeny Kornilov will leave the group in October 2010 following his acceptance of a senior management position at another company. X5 has initiated a transition plan and the supervisory board has commenced an executive search process to recruit the best candidate for the CFO position.
Khasis said, “Kornilov was instrumental in X5’s successful response to the financial crisis and economic downturn, and played a leading role in controlling costs, increasing capex discipline, improving working capital and strengthening our liquidity and balance sheet. Kornilov also made valuable contributions in building X5’s finance organisation and strengthening communication with the capital markets.”
Asserting that he will ensure a smooth transition, Kornilov said, “It’s been my privilege to be part of X5 at a time of phenomenal growth and increased market leadership. The company is in a strong financial position to support its strategic goals for the years to come and this is a good time to make a change.”
Kornilov was appointed chief financial officer of X5 Retail Group in January 2008. He has been recognised with numerous awards, including the award for “Best Investor Relations by a CFO”, in the Focus Russia 2009 Thomson Reuters Extel Survey.
– IndiaRetailing Bureau
