Food Industry News

Expert: the Russian food-retailing leader changes

Growth X5 Retail Group is now based on a huge investment program, implemented by the company. In fact, it is the extensive development of the network, the opening of new stores; we have a situation in which this year X5 Retail Group set a record for the opening of "Pyatorochka".

More than 2000 "Pyatorochka" will be opened - it is a fantastic result, never so much "Pyatorochka" have not been revealed.

"Magnet" this year will make one of the worst indicators on the discoveries. The likelihood that X5 Retail Group will outperform Magnit in terms of revenue is. The growth rate of the X5 Retail Group is very good. In addition to the factor associated with investment activity, the X5 Retail Group has fundamental factors that allow it to grow. That rebranding, which produced X5 Retail Group in the "Pyaterochka" format, was made extremely timely. Pyaterochok has a factor of cannibalism of traffic among its competitors, lile for like (comparable sales) Pyaterochka is now slightly higher than the industry average, and this suggests that they are now luring customers from competitors. "Dixie" launched an advertising campaign, "Magnet" launched a rebranding, but this all will not have time to work this year already, most likely, and at X5 Retail Group it turned out that they did everything on time.

I think that if the "Magnit" will continue the tactics pursued by now, and will try to maintain a level of profitability acceptable to the shareholders, and it is from them is twice as high on the results of III quarter than in X5 Retail Group, it will inevitably lead to that X5 Retail Group will enter the leading position, if not at the end of this year, at the beginning of the next.

Ivan Fedyakov General Director of Infoline Analytical Agency Especially for RNS

See also ... 27/01/2016 X5 Retail overtook Magnit in growth rates 03/07/2015 X5 Retail and Magnit accused of discrimination 01/09/2016 Pyaterochka examines the demand for discounted goods 18/12/2015 X5 Retail in 2015, it accelerated the growth of the network by 1,5 times28 / 07/2016 Pyaterochka complained to the Federal Antimonopoly Service of “Troechka” on 19/10/2016 X5 Retail revenue increased by 30% in Q05 02/2016/5 X15 Retail collected “Assorted ”06/2016/25 Retail demonstrates success in fighting inflation02 / 2016/5 X18 Retail Group announces the launch of“ Pyatnitsa ”08/2016/5 X04 doubled its net profit for six months03 / 2016/5 X21 will increase the network of Perekrestoks near Moscow 09 / 2016/5 X22 Retail relies on direct imports03 / 2016/5 X4 Retail pays management 27 billion rubles10 / 2016/5 Profit X66 Retail increased in the III quarter by 05% 04/2016/5 XXNUMX Retail left a stable rating of “BB”

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