Amsterdam, 11 June 2008 – X5 Retail Group N.V. (“X5” or the “Company”), Russia's largest food retailer in terms of sales, has launched its first hypermarket under Mercado Supercenter brand.
The first Mercado Supercenter opened its doors to customers in Lipetsk on 10 June 2008, as a result of restyling and rebranding of “My” hypermarket that was purchased by X5 within Korzinka acquisition in December 2007.The store has a net selling space of 6,000 sq. m. and offers approximately 40,000 SKUs, of which above 30% are non-food items. Goods from local producers account for above 20% of the store’s assortment.
Antonio Melo, X5 Retail Group’s Chief Operating Office, said:
“We are happy to announce the launch of our first Mercado Supercenter store.X5’s team has invested significant efforts in developing and implementing this new hypermarket concept, and we hope our customers will enjoy their shopping experience with us.Low prices, wide assortment of products, including goods from local producers, attractive loyalty program, modern design, convenient layout, sufficient parking and many other things were brought together for the launch of this store. Clearly we do not plan to stop where we are – this is just the first step in execution of our strategy of rolling-out Mercado Supercenters across European Russia and Urals.”
X5 Retail Group N.V.is Russia's largest food 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. As of 31 March 2008, X5 had 731Company managed soft discount stores located in Moscow (321), St. Petersburg (249) and other Russian areas (161), 183 Company managed supermarkets across Central Russia and Ukraine, including 108 stores in Moscow (Moscow region and Yaroslavl region), and 16 Company managed hypermarkets. As of 31 March 2008, X5’s franchisees operated 711 stores across Russia and Kazakhstan. X5’s net sales for the full year 2007 reached USD 5,320 mln, an increase of 53% year-on-year.Gross profit for the period totaled USD 1,404 mln, EBITDA amounted to USD 479 mln.Full year 2007 net income reached USD 144 mln. X5 Retail Group N.V.’s net sales for the first quarter 2008surged61% in USD terms and reached USD 1,786 mln. Gross profit for the period totaled USD 458 mln, EBITDA amounted to USD 161 mln, net profit – to USD 86 mln.