X5 signs cooperation agreement with the government of the Kaliningrad RegionX5 Retail Group, a leading Russian food retailer that operates the Pyaterochka, Perekrestok, and Karusel retail chains, has entered into a cooperation agreement with the government of the Kaliningrad region. The document was signed by Kaliningrad region Governor Anton Alikhanov and X5 Retail Group CEO Igor Shekhterman.
The parties agreed to continue the development of social and economic infrastructure related to retail. The sides will work together to boost the retail industry in the region as a way to meet the population's demand for high-quality and affordable goods, as well as to improve the quality of life and social infrastructure in the Kaliningrad region.
Under the agreement, X5 Retail Group will continue to expand in the region, opening new stores, creating jobs for residents, and expanding cooperation with local producers. The partnership agreement also provides for the active adoption and use of cutting-edge technologies and implementation of social programmes for disadvantaged groups. Within its mandate, the regional government will support the development of the retail industry, use the Company's expertise and proposals, and hold joint events with retail chains and producers to share information. It will also assist X5 in implementing the Company's sustainable development strategy.
"The Kaliningrad region is the westernmost region where our retail formats operate. For me, the partnership agreement with the Kaliningrad region is of particular significance, as I am a native of this region and it plays an important role in the Company's development. We expect to open around 20 Pyaterochka stores in the region by the year's end, creating approximately 400 new jobs for local residents. We intend to further strengthen our cooperation with local producers, who already account for more than 40% of our stores' assortment in the region. In addition, we are planning initiatives to support socially vulnerable groups," said Igor Shekhterman, CEO of X5 Retail Group.
"The first Pyaterochka stores appeared relatively recently in our region. This is a positive development for the Kaliningrad region: the arrival of a federal retail chain of this scale will stimulate competition, which, I hope, will help reduce prices for consumers and improve the quality of service," said Anton Alikhanov, who also noted the active cooperation of X5 with local producers in the Kaliningrad region.
The first Pyaterochka stores in the Kaliningrad Region opened at the end of June this year. Currently, six Pyaterochka stores operate in the region, including four in Kaliningrad and one each in Zelenograd and Chernyakhovsk. Pyaterochka has already created around 150 new jobs in the region.
X5 Retail Group
X5 Retail Group is the leading multi-format food retailer in Russia. X5 shares are listed on the London Stock Echange (LSE) and Moscow Exchange in the form of Global Depositary Receipts under the ticker "FIVE". The Company operates several retail formats, including the chain of conveniently located proximity stores under the Pyaterochka brand, the supermarket chain under the Perekrestok brand, the hypermarket chain under the Karusel brand.