Leading Russian food retailer X5 Retail Group has announced plans to sell its Perekrestok Express stores in Moscow and refocus on its other three major store formats.
According to the retailer, the smaller format convenience stores will be divested as the company seeks to concentrate its efforts on its Pyaterochka proximity stores, Perekrestok supermarkets and Karusel hypermarkets.
Igor Shekhterman, X5 Retail Group CEO, said: “Convenience stores like those that Perekrestok Express operates in Moscow, which have a selling space of up to 200 sq m, certainly have potential. However, they represent a fairly narrow segment of Russia’s modern food retail market, in which proximity stores, supermarkets and hypermarkets occupy more than a 90% share”
He added that the decision came on the back of the firm’s increased market share in its three main formats.
Perekrestok Express stores currently account for less than 1% of X5 Retail Group’s total revenue.
Source: X5 Retail / ESM