X5's discounters do better than supermarkets in H1 2010

2010-07-20

The largest Russian grocery retailer X5 Retail Group grew its net retail sales by 19% year on year to RUB 155.5bn or by 31% to $5.2bn in H1 2010. In the second quarter, X5's sales rose by 18% to RUB 79.8bn or by 26% to $2.6bn in Q2 2010.

X5’s like-for-like (LFL) sales in H1 2010 increased by 5% in RUB terms, driven by a 2% increase in customer traffic. Discounters fared the best in terms of sales growth, LFL sales (14% growth) and sales per m². Supermarket LFL sales declined by 7%, reporting a 9% drop in consumer traffic, as customers continued to favour discounters due to the continued economic uncertainty.

X5 opened 100 stores in H1 2010 including 96 discounters and four hypermarkets, plus 42 convenience stores via gaining operational control of Express Retail.

X5 Retail Group is present in 45 cities in Russia and Ukraine. As of 30 June 2010 it operated 1,514 stores in total, including 1,135 discounters, 275 supermarkets, 62 hypermarkets and 42 convenience stores.