X5 and OZON to install over 4,000 parcel lockers and pick-up points in Pyaterochka storesX5 Retail Group, a leading Russian food retailer, has entered into a strategic partnership agreement with OZON, one of Russia's largest e-commerce businesses, to open 2,000 pick-up points and about 2,000 parcel lockers in Pyaterochka stores across the majority of regions where the format operates by the end of 2020.
The arrangement will also enable customers to pick up OZON orders at Pyaterochka checkout counters as well as at the parcel lockers and pick-up points of X5 OMNI's partners. X5 OMNI is a subsidiary of X5, and its logistics capacities will be used to deliver OZON packages to stores.
Pyaterochka General Director Sergei Goncharov said: "Cooperation with OZON is an important step in developing our omni-channel platform and new services for our customers, who are increasingly looking for a convenient digital experience and time-saving solutions. In addition, partnering with one of Russia's e-commerce leaders will help us to expand our proposition and offer additional services at our stores."
X5 Retail Group Director for Strategic Business Development Igor Pletnev said: "X5 OMNI plans to deliver OZON parcels to Pyaterochka stores and to enable collection of parcels from other companies with OZON lockers and pick-up points. OZON, in turn, will be able to deliver goods via Pyaterochka checkout counters, as well as parcel lockers and pick-up points at X5 OMNI and its partners. We hope that as soon as next year any visitor to a Pyaterochka store will be able to collect orders from any online store as part of their grocery shopping."
OZON CEO Alexander Shulgin said: "In 2018, OZON's revenue grew by 73% year-on-year, which is nearly four times faster than the market, and with no signs of slowing down in 2019. The launch of the Ozon.Premium subscription, combined with rapid expansion of our assortment by connecting more than 3,500 third-party sellers to the marketplace, is driving further growth in orders, which in turn requires rapid expansion of delivery channels. The partnership with X5 enables us to promptly double our network of pick-up points and to use locations that are convenient and familiar to customers. "
Currently about 70% of OZON orders are delivered through pick-up points and parcel lockers, and we operate about 5,500 parcel delivery points. The partnership with X5 OMNI will enable us to more than double our delivery network, and to gain more leverage at locations that are popular among shoppers and are part of their everyday routines. Customers can pick up orders and obtain other useful products such as Ozon.Card cards at the pick-up points. New pick-up points will also operate as collection points for goods from the third-party sellers, thus providing more shipment opportunities for suppliers across Russia.
X5 OMNI is a subsidiary of X5 Retail Group created to develop parcel delivery services in Pyaterochka, Perekrestok and Karusel stores. Over 2,200 parcel lockers have already been installed in X5 stores, with over 800,000 parcels collected. In April 2019, X5 completed the development of its cutting-edge digital platform with the capacity to process up to one million parcels a day. X5 OMNI sorting centres have already been launched at Pyaterochka's distribution centres in Vorsino and Podolsk. Nine more sorting centres are planned to be opened by year-end to reach the target of 500,000 parcels per day.
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.