Pyaterochka Explained

Пятёрочка
Logo Alt:Logo of the store, a white number 5 where the top of the number is instead a green leave. The whole number is inside a white circle on top of an orange background.
Image Alt:The front of a store, with glass windows and glass doors, and the name of the store in Russian on top, including a logo that appears to be the number five with a leave instead of the upper part of the number.
Native Name:Пятёрочка
Native Name Lang:ru
Romanized Name:Pyaterochka
Industry:Retail
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Founded: in Russia
Founders:-->
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Pyaterochka (Russian: links=no|Пятёрочка|Pyatyorochka|lit=Five) is a Russian chain of convenience stores managed by X5 Retail Group. The chain opened its 15,000th store in the city of Zelenograd, Russia, in May 2019.[1]

History

The chain opened its first store in 1999 in Saint Petersburg. Pyaterochka expanded its market to Moscow in 2001 and started a franchise program a year later. Pyaterochka Holding N.V. completed an initial public offering on the London Stock Exchange in 2005. Pyaterochka and Perekrestok merged in 2006 to create X5 Retail Group; the group kept the Pyaterochka brand.[2]

In 2009 X5 Retail Group acquired Kopeyka, a retail chain with more than 660 stores and seven distribution centers.[3] All Kopeyka stores were rebranded to Pyaterochka.

Pyaterochka launched a store refurbishment program in 2013 to introduce a new range of products, and to make the store layout more spacious. Most of the stores were refurbished with a glass-front design. The Pyaterochka brand of discount stores is the core format for X5 Retail Group, followed by the Perekrestok supermarket chain.[4]

Pyaterochka launched a store refurbishment program in 2019. Most of the stores were refurbished with a glass-front design. The new Pyaterochka would offer almost twice as many fresh products in a selling area of around 150 square meters, which is about half of the sales floor. Vegetables, fruits, and some of the perishable items are laid out in a dedicated fresh zone. The rebranded Pyaterochka sells a wide assortment of foods and ready-to-eat meals and has a special area where customers can have a coffee or fresh orange juice and charge their electronics. An in-store bakery made it possible to expand the offering of bread and pastry.[5] [6]

X5 launched an express delivery service from Pyaterochka stores at the end of 2019. As of April 2020, the service is available in Moscow, Lyubertsy, Skhodnya and Kazan.[7]

Key metrics

, Pyaterochka operated 15,354 proximity stores, which generated a revenue of 1.367 trillion rubles.[8]

Key operating metrics of Pyaterochka (as of 31 December)
Parameter / Year2010*[9] 2011[10] 2012[11] 2013[12] 2014[13] 2015[14] 2016[15] 2017[16] 2018[17] 2019
Number of stores 2,052 2,525 3,220 3,882 4,789 6,265 8,363 11,225 13,522 15,354
Selling space, in thousands of square meters 881 996 1,191 1,414 1,754 2,423 3,329 4,426 5,291 5,975
Net retail revenue, in billions of rubles 194.8 282.8 317.7 348.4 435.8 585.4 775.6 1,001 1,198 1,367
Customer visits, in millions 831 1,211 1,353 1,450 1,645 1,990 2,543 3,367 3,913 4,460

IT and innovations

In the spring of 2017 Pyaterochka began to automate its recruitment efforts. The automated system searches through curriculum vitae for a predetermined set of parameters and automatically calls matching candidates to invite them to open positions at the company. The automated system uses speech recognition technology with a female-voiced robot, Vera, and a male-voiced robot, Yermil, to transfer interested candidates to a human recruitment specialist.[18] [19]

X5 Retail Group launched an online service in February 2018 that calculates the average rent that a Pyaterochka store pays anywhere that it has a presence. Based on this information, property owners whose property meets the chain's criteria can send offers to X5 Retail Group.[20]

In October 2018 X5 Retail Group has opened a 'lab store' based on Pyaterochka in Moscow, to test new technologies that will enhance customer experience. Engineers in the lab conduct in-store trials of electronic shelf labelling, video analytics, smart shelves, digital information panels, and self-scanning and self-checkout systems. If a technology works out in the lab, it will move on for pilot testing in Pyaterochka, Perekrestok and Karusel stores, where X5 experts will also assess the viability and impact of these technologies on sales and costs. Based on the results of the pilot stage, a final decision is made on the implementation of the new technology in X5 stores.[21]

X5 Retail has begun installing self-checkout machines across its Pyaterochka proximity stores in April 2020. Tested successfully in August and September last year, these self-checkouts are now already installed at 369 stores. The plan for 2020 is to have a total of 12,000 units operating.[22] [23]

Logistics

, Pyaterochka operates 31 distribution centers.

Cultural facts

Pyaterochka purchased the rights to the animated series Well, Just You Wait! (Russian: Ну, погоди!|Nu, pogodi!) in February 2005. Director Aleksey Kotyonochkin, the son of animator Vyacheslav Kotyonochkin,[24] created two new episodes—number 19 in 2005 and number 20 in 2006—for Pyaterochka.

In January 2013 X5 Retail Group signed an agreement with the Sochi 2014 Organizing Committee to be the official retail partner of the 2014 Winter Olympics in Sochi. Under the agreement, around 1,000 licensed Olympic souvenirs were available from Pyaterochka stores in 45 Russian regions.[25]

Management

1998-2004 — Sergey Lepkovich[26]

2004-2012 — Oleg Vysotsky[27]

2012-2013 — Frank Mros[28] [29]

2013-2018 — Olga Naumova[30]

2018 (April-June) — Igor Shekhterman (Chief Executive Officer of X5 Retail Group, he also served as the general director of the retail chain Pyaterochka)

June 2018 - January 2022 — Sergey Goncharov[31]

From January 2022 — Vladislav Kurbatov[32]

Notes and References

  1. Web site: X5 Retail Group's chain reaches 15,000 stores . 17 May 2019 . AK&M Information Agency . April 19, 2020 . en.
  2. Web site: Company Overview of Pyaterochka Holding N.V. . Bloomberg L.P. . August 25, 2018 . en.
  3. Web site: X5 Retail to acquire Kopeyka discounter chain . 5 December 2010 . IndiaRetailing.com . August 25, 2018 . en.
  4. Web site: Ruling the retail roost: Russia's top five supermarket chains ITE Food & Drink. www.food-exhibitions.com. 2018-09-25.
  5. Web site: Pyaterochka presents new concept . Financial Times . April 18, 2020 . en.
  6. Web site: Pyaterochka . JDV Russia . April 18, 2020 . en.
  7. Web site: X5 Retail Group reports 15.9% net retail sales growth in Q1 2020 . London Stock Exchange plc . April 18, 2020 . en.
  8. Web site: Annual Report 2019 . X5 Retail Group . April 18, 2020 . en.
  9. Web site: Annual Report 2010 . X5 Retail Group . August 25, 2018 . en.
  10. Web site: Annual Report 2011 (Online version) . X5 Retail Group . August 25, 2018 . en.
  11. Web site: Annual Report 2012 . X5 Retail Group . August 25, 2018 . en.
  12. Web site: Annual Report 2013 . X5 Retail Group . August 25, 2018 . en.
  13. Web site: Annual Report 2014 . X5 Retail Group . August 25, 2018 . en.
  14. Web site: Annual Report 2015 (Online version) . X5 Retail Group . August 25, 2018 . en.
  15. Web site: Annual Report 2016 (Online version) . X5 Retail Group . August 25, 2018 . en.
  16. Web site: Annual Report 2017 (Online version) . X5 Retail Group . August 25, 2018 . en.
  17. Web site: Annual Report 2018 . X5 Retail Group . April 18, 2020 . en.
  18. Web site: https://www.kommersant.ru/doc/3344781 . ru:"Пятёрочка" автоматом . Kommersant . August 25, 2018 . ru. 6 July 2017 .
  19. Web site: https://www.vedomosti.ru/management/blogs/2017/09/25/735119-podbor-personala-robotov . ru:Как улучшить подбор персонала с помощью роботов . Business News Media . August 25, 2018 . ru . 24 September 2017 .
  20. Web site: Russian Federation: Pyaterochka to provide rent-calculation tool for 63 regions . SyndiGate Media Inc. . August 25, 2018 . en.
  21. Web site: X5 Opens Technology 'Lab Store' in Moscow . Russia Business Today . 19 October 2018 . April 18, 2020 . en.
  22. Web site: How COVID-19 is shaking Russia's online and offline retail . Digital Commerce 360 . 13 April 2020 . April 18, 2020 . en.
  23. Web site: Russia's X5 Retail Group rolls out self-checkout (SCO) machines at its stores to help with social distancing . bne IntelliNews . 11 April 2020 . April 18, 2020 . en.
  24. Web site: New 'JUST YOU WAIT!' episodes now evailable in Perekrectok and Pyaterochka stores . X5 Retail Group . August 25, 2018 . en.
  25. Web site: Х5 appointed official retail partner of the Sochi 2014 Winter Olympics . X5 Retail Group . August 25, 2018 . en.
  26. Web site: 2001-03-14 . "России требуется три тысячи дискаунтеров" . 2024-06-16 . www.kommersant.ru . ru.
  27. Web site: 2012-03-05 . Олег Высоцкий покидает пост директора «Пятерочки» . 2024-06-16 . Ведомости . ru.
  28. Web site: 2013-05-16 . X5 нашла директора «Пятерочки» на ЧТПЗ . 2024-06-16 . Ведомости . ru.
  29. Web site: 2013-05-16 . В "Пятерочку" вплавляют металл . 2024-06-16 . www.kommersant.ru . ru.
  30. Web site: 2018 . Гендиректор сети "Пятерочка" покинет свой пост . ru.
  31. Web site: Гендиректором "Пятерочки" назначили Сергея Гончарова - ТАСС . 2024-06-16 . TACC . ru.
  32. Web site: Гендиректором "Пятерочки" назначили бывшего главу "Перекрестка" Курбатова - ТАСС . 2024-06-16 . TACC . ru.