Leading Russian food retailer X5 Retail Group has announced that continued growth has enabled the company to maintain its market position.
X-5’s total online turnover for the year has reached RUB 12.7bn (including VAT); this includes RUB 9.6bn from Perekrestok Vprok and RUB 3.1bn from express delivery services.
Online sales accounted for 0.8 per cent of X5’s total turnover in Q3 2020; in Moscow and the Moscow region the share online sales was 1.9 per cent during the period. For FY 2020, online sales are expected to exceed one per cent of X5’s total sales and to exceed two per cent of sales in Moscow and the Moscow region. Revenue from X5’s digital businesses is expected to amount to at least two per cent of total revenue in 2021.
In October and November 2020, X5 has seen vast acceleration in consumer demand for online groceries. This is predominantly attributable to higher adoption of such services by consumers, as well as to seasonal factors and safety concerns related to the rising number of Covid-19 cases. In order meet rising consumer demand, X5 expanded its online offering in July-November 2020 to 13 additional cities. Express delivery expanded to Nizhniy Novgorod, Voronezh, Ekaterinburg, Novosibirsk, Chelyabinsk, Samara and Ufa. Perekrestok Vprok added coverage for Tver, Tula, Ryazan, Vladimir, Cheboksary, Kazan, Velikiy Novgorod and Vyborg. X5’s online services are currently available in 18 cities.