X5 Retail Group. Годовой отчет за 2022 год (на английском)

Strategic priorities

Focus on growth in retail sales and market share by
increasing sales density across existing stores and

boosting the rate of new openings

Further implementation of the new CVP

Optimisation of operational expenses, including improving

process efﬁciency

Further development of express delivery service to

enhance omnichannel experience

Fostering a partnership culture and strengthening store

teams

STRATEGIC REPORT

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PYATEROCHKA

CVP transformation

Pyaterochka has aligned its CVP with
customer demands and transformed its
operational model to accelerate decision-
making on the ground in support of its long-
term sustainable business development.

Share of private labels
in sales (year-end)

2020

19%

2021

21%

2022

24%

2023E

27%

Operational efficiency

Introducing a partnership model for store management

STRATEGIC REPORT

REVIEW BY FORMATS

PYATEROCHKA

The current macro environment has once again focused our attention on efficiency,
and we continue to work in several key areas:

Pyaterochka’s key step in further developing its business in 2022
was the Company’s shift towards a partnership culture. The flagship
initiative in this focus area is the Store Director – Partner project.

This new approach sees store directors as partners; the Company is
placing more confidence in key people in the field and giving them
more decision-making power and responsibilities.

In autumn 2021, we piloted the Store Director – Partner project
across 16 stores in Moscow, the Moscow Region, Kirov and Voronezh.
At the end of 2022, the programme covered 1,091 stores (6% of our
store network).

The main difference between partner store directors and
conventional store directors is that the former have a wider range of
tools at their disposal: they can introduce a sales incentive plan with
their cluster director, manage the headcount and influence the
product mix to increase the share of individual product groups, etc.

By the end of 2022, the Store Director – Partner project had brought
the Company solid results. The transformation of the store director’s
role generated over RUB 200 million in incremental EBITDAR.

The Company plans to turn as many as 25% of store directors across
Russia into partners by 2024. Pyaterochka has seen a positive
response, as more high-quality candidates are joining the
programme with each new wave of enrolments, and the Company is
working to roll out best practices for partner managers across the
entire chain, boosting the programme’s performance.

Social responsibility

Since 2015, X5 has been promoting the Basket of Kindness project, a
food drive that helped almost 200 thousand people in 40 regions of
Russia, including large families, pensioners, people in need, doctors,
and refugees in 2022. The Company has now initiated another food
aid project that will see even more people receive food donations. In
2022, X5 partnered with Foodsharing and Foodbank Rus to launch a
pilot food sharing project that donates food to individuals in need.

The project collects food from stores that is nearing its expiration
date, trains employees in the necessary procedures and establishes
efficient logistics to deliver the food to those who need it most. The
products are collected by volunteers and distributed within several
hours to individuals supported by Foodbank Rus, a food aid charity,
and Foodsharing, a non-profit organisation.

In its first stage, the project was introduced to several Pyaterochka
stores in Moscow and Chelyabinsk and later expanded to several
other Russian cities.

LOGISTICS

LABOUR
PRODUCTIVITY

RANGE
EFFICIENCY

RENT

Continued development of multilayer logistics infrastructure

Focus on improving transportation efficiency

Improved operational efficiency and reduced manual labour in stores

Scaling the Store Director – Partner programme

Smart assortment optimisation

Reduced inventory and losses through an end-to-end supply
planning process

Further optimisation of rent costs with a focus on revenue-linked rent

Shrinkage

2020

2021

2022

−17 b.p.

−7 b.p.

STRATEGIC REPORT

REVIEW BY FORMATS

PEREKRESTOK

Key 2022 highlights

Key operating results

Perekrestok net retail sales by region,

2021

61.4

17.3

9.6

6.3

4.9 0.6

2022

60.9

18.1

9.3

6.2

4.8 0.6

Central FD

North-Western FD

Volga FD

Ural FD

Southern FD

North Caucasus FD

671

RUB

Average ticket

+7.1%, 2021/22

658

MLN

Customer visits

+3.3%, 2021/22

Loyalty card penetration
in sales

9.5

MLN

Active loyalty card users

−2.8%, 2021/22

CUSTOMER METRICS

971

Stores in operation

–1.9%, 2021/22

7.1

LFL sales growth

1,085

THS

SQM

Selling space

–1.2%, 2021/22

386.2

RUB

BLN

Revenue

+10.0%, 2021/22

7.3

EBITDA margin

pre-IFRS 16

OPERATIONAL METRICS

FINANCIAL METRICS

CAGR

2021

2020

2019

2018

Number of stores, eop

Net retail sales, RUB bln

Selling space, ths sqm, eop

Customer visits, mln

6.3%

13.7%

8.5%

6.8%

990

349

1,099

636

933

320

1,014

562

852

273

879

589

760

231

782

505

2022

971

385

1,085

658

1 At least one purchase made in

December 2022.

Strategic Priorities

Updating our CVP to focus on our unique assortment and
presence in large cities

Focus on LFL growth rather than new openings

Focus on a unique and streamlined assortment, including
private labels and ready-to-eat products

Driving sustainable and profitable growth in online
services

Updating the value proposition
of Perekrestok supermarkets

With real household incomes on the decline and
frugality on the rise, food is becoming the most
affordable form of entertainment.

The supermarket format best meets the demand for
entertainment and meals:

High level of service

A broad and unique assortment

Ambience and service that are better than at convenience
stores and hypermarkets

Adaptation of updated CVP

Focus on quality and freshness in differentiating
categories (Ultra-Fresh, Fresh, and Fruit and Vegetables)

Covers all the needs and shopping missions of the target
audience, with private labels and branded products as well
as affordable to-go and dine-in ready-to-eat meals

Focus on expansion of sales via express delivery

Basic range of products at prices available from soft
discounters

STRATEGIC REPORT

REVIEW BY FORMATS

PEREKRESTOK

Assortment

Personnel

STRATEGIC REPORT

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PEREKRESTOK

Our employees are one of the keys to our success in
providing reliable high levels of service to our
customers. We continue to roll out industry best
practices for our store staff, from improving staff
lounges and developing the Perekrestok employee
mobile app to expanding training opportunities and
maintaining ways for staff to be more engaged and
share in our success.

Perekrestok is continuously working to
improve its mobile app and expand its
presence in key online food shopping
missions, including by making smart use of
partner sales channels. Over 95% of orders
are delivered on time.

In 2022, Perekrestok’s express delivery
online business handled 12.2 million orders
placed via our in-house delivery service or
aggregators.

Perekrestok will ramp up its online sales,
including through aggregator websites and
new fast delivery options.

We are updating our team sourcing strategy to boost
inventory turnover through active sales, including via
new product recommendations, deals of the day and
cross sales. We are also rolling out the Work Force

Planning system for more ﬂexible workforce planning,

including for part-time employees, as well as a
transparent incentive system.

In 2023, we are planning to roll out the Store
Director – Partner project to all stores. The main
difference between partner store directors and
conventional store directors is that the partner store
directors have a wider range of tools at their disposal:
they can manage headcount, work schedules, and
train and motivate their staff.

Private label share in sales (year average),

Private labels

2021

15%

2020

13%

2022

18%

2023E

26%

Express delivery

Consolidating our portfolio of private labels
by reducing the number of brands and

focusing on key private labels

Unique assortment centred around private
labels and expanding our offering in the

premium price segment

Ready-to-eat share in sales,

Ready-to-eat products

2020

2.5%

2021

4.1%

2022

4.6%

Focusing on stronger performance and
higher inventory turnover

Redesigning the packaging and
communication initiatives to improve the
perception of Perekrestok’s ready-to-eat

products

Focusing on boosting the share of online

sales in ready-to-eat meals

Cafe and open kitchen

Expanding the open kitchen footprint by teaming up with Mnogo Lososya as a partner and the operator of 235 cafe

points at the end of 2022

Expanding the footprint of cafe/coffee points in Perekrestok stores

Key 2022 highlights

Target CVP of the hard discounter format

Operational efficiency

Operational efficiency and standardisation are
the key elements of the format’s model; we
intend to become the cost leader. One of
Chizhik’s key principles is “more of what you
need, less of what you don’t”; it is embedded
across the retail chain’s corporate culture.
Chizhik strives to cut costs as much as
possible, where they have no direct impact on
the business or do not contribute to sales
growth.

Plans for 2023

Chizhik is a standard format store with a total area of
about 400 square metres, with the sales floor
occupying 250–300 square metres. With an optimised
assortment matrix and smart pricing, we have
achieved higher sales densities compared to
convenience stores. The format calls for a target of
seven FTEs on average, low shrinkage and high
operational efficiency across in-store processes.

STRATEGIC REPORT

REVIEW BY FORMATS

CHIZHIK

35.9

RUB

BLN

Revenue

12х, 2021/2022

630

RUB

Average ticket

+11.0%, 2021/2022

64.8

MLN

Customer visits

11x, 2021/2022

517

Stores in operation

7х, 2021/2022

Started the process of scaling the format, launched six new
regional divisions with over 500 standardised stores in 13
Russian regions

Launched own logistics operations with six distribution
centres at the year-end

Strategic Priorities

Accelerated expansion with a plan to enter all key regions
of X5 chains’ presence

Continuous focus on operational efficiency while
maintaining uncompromised quality of our private labels at
reasonable prices

Creation and development of points of differentiation from
the market and strengthening a unique perception of
Chizhik

Price leadership at the given quality level

Saving time: quick to find and buy

Stable prices and assortment

Open 1,000 new stores

Launch new regional business divisions and new DCs

Launch new private-label brands

Pilot a mobile app with a home delivery option

Covering 50% to 60% of customer needs

Private label quality that matches that of well-known brands

Young and friendly staff

A welcoming, streamlined store

Caring for the family through quality and price

Caring for the family by saving time

Our core CVP: Products that meet our quality standards
at such low prices are available only at Chizhik

I find it attractive

PRICE

ELEMENTS

MANY STORES

ARE BETTER

THAN US

WE ARE LIKE

ANY OTHER

STORE

WE ARE BETTER

THAN MANY

STORES

WE ARE THE

LEADER

DIFFERENTIATORS

I find it convenient

TIME

I can find everything I need

ASSORTMENT

I find it nice

AMBIANCE

I do care

SOCIAL RESPONSIBILITY

STRATEGIC REPORT

REVIEW BY FORMATS

KARUSEL

In 2022, Karusel continued its transformation following the
earlier management decision to downsize the format’s
operations. As at 31 December 2022, twelve Karusel
hypermarkets remained in operation.

A total of 21 hypermarkets were closed in 2022, and all lease agreements
were successfully terminated, while the remaining stores may be either
transferred to Perekrestok, leased or sold in the foreseeable future.

Karusel’s team primarily focused on minimising the risks associated with
the closures and securing efficiencies and low stock levels in
hypermarkets slated for closure. The chain also shut down its loyalty
programme in 2022 as we expect many customers to opt for our online
shopping tools like Vprok.ru or express delivery.

About 30% of the staff across the closed hypermarkets will continue
to work in other X5 Group businesses.

Karusel

Karusel hypermarkets
remained in operation

as at 31 December 2022

Hypermarkets were
closed in 2022

Staff across the closed hypermarkets will continue
to work in other X5 Group businesses

Krasny Yar

and Slata

STRATEGIC REPORT

REVIEW BY FORMATS

KRASNY YAR AND SLATA

Slata retail chain

In November 2022, X5 ﬁnalised a strategic partnership with
Krasny Yar and Slata, two of the leading retail groups in
Eastern Siberia. As part of the agreement, X5 acquired a 70%
stake in both Krasny Yar and Slata.

Krasny Yar Group operates Krasny Yar and Baton stores in
the Krasnoyarsk Territory, Tyva and Khakassia, while Slata
Group operates Slata and KhlebSol stores in the Irkutsk
Region, Buryatia and the Transbaikal Territory. In addition,
both groups are tenants of a total of four distribution centres
with a total area of 62.3 thousand square metres: one in
Krasnoyarsk, two in the Irkutsk Region and one in the
Transbaikal Territory.

In 2023, key drivers will include synergies from the strategic
partnership with X5 Group and the partial integration of both
retailers’ operational processes with those of X5, including in
procurement and logistics:

Combined bargaining power with both federal and regional
suppliers unlocking better terms of purchase and the best
price for the market leader

Optimised transport support and the use of best practices
across business processes

Streamlined relationships with banks

KhlebSol discount store format

The discount store format has successfully
complemented the supermarket segment and,
following the overall retail development trend, has
become central to the Company’s future growth
plans. The KhlebSol format is a leading soft discount
store in the Transbaikal Territory, with 283 outlets
operating in this format as at the end of 2022,
offering an average selling space of 280 square
metres per store and an average assortment of
1,500 SKUs.

The format focuses on fresh produce, which is
currently the focus of its key value proposition, with
an emphasis on private labels. Regarding price
positioning, the business will maintain its focus on its
EDLP strategy, while retaining an emphasis on
advertising campaigns and price communications.

The format’s strengths include its price-driven image
as perceived by its customers, its convenient store
locations and the high proportion of fruit and
vegetables in its product turnover.

Slata supermarket format

With 79 stores at the end of 2022, Slata is the
leading supermarket chain in the Irkutsk
Region and one of the leaders in Transbaikal
Territory. Its stores measure 650 square
metres on average, with an average
assortment of about 8,000 SKUs.

Slata’s positioning is centred around major
trends in food retail in the proximity
supermarket format – a fast-paced life,
changing food shopping habits, stronger
demand for premium products, and
increasing price sensitivity on the part of
consumers:

A great location and a balanced, although
limited, product mix make shopping at
Slata fast and easy

A wide assortment of fresh produce, ready-
to-eat and ready-to-cook meals, fewer
premium products than in big-box stores
and good availability of organic products

Prices for staples are slightly higher than at
discount stores, but no higher than in
other supermarkets, remaining generally
affordable and attractive for the bulk of
shoppers

Slata continued focusing on its key category, its own production, in many
cases with unique recipes and guaranteed quality. Each store offers a
wide range of its own baked goods along with confectionery and deli
products. The chain offers a vast selection of ready-to-eat meals at
considerably lower prices than at restaurants, without compromising on
quality.

As a result, consumers view Slata as a store that has everything they
need, as well as things that cannot usually be found locally. Particular
attention is paid to offering an assortment of extra-fresh and affordable
fruits, vegetables and greens as one of the format’s key mainstay
categories. Slata offers its customers convenient services with self-
checkouts developed in-house and a loyalty programme.

The chain is expanding its offer from local farmers in its stores, with an
emphasis on freshness and local origin. Since 2020, the retailer has been
successfully implementing the Local Producers project to support small
and medium-sized enterprises through partnerships with regional
authorities and, by stocking local suppliers’ products on its shelves, the
retail chain provides a wide range of consumers with access to local
products.

In 2023, Slata will continue to focus on the Fresh category and its own
production, as they serve as the key drivers behind the format’s
customer perception. Slata is planning to develop a new mainstay
category – Fish Market – which, coupled with the already strongly
performing Meat Market, will sharpen the format’s competitive edge. In
parallel, the retailer is working to improve its operational efﬁciency,
minimise losses and identify other areas to boost ﬁnancial performance.

STRATEGIC REPORT

REVIEW BY FORMATS

KRASNY YAR AND SLATA

Krasny Yar retail chain

Krasny Yar supermarket format

Krasny Yar is among the revenue leaders in the
supermarket format in the Krasnoyarsk Territory. As at
the end of 2022, the retailer was operating 64 stores.
Its stores measure 566 square metres on average,
with an assortment averaging from 8,000 to 12,000
SKUs. The retailer has continued improving its key
category – its own production – with every Krasny Yar
store offering its own hot and fresh baked goods
along with confectionery and deli products as at the
end of 2022.

In 2022, the chain was focused on enhancing its

operational efﬁciency and becoming more attractive

for shoppers. The retailer rapidly responded to fast-
paced macroeconomic changes and will continue to
do so in future. Its key objective revolves around

offering a sufﬁciently broad assortment at attractive

prices at any point in time. The chain will also maintain
its focus on the Fresh and Ultra-Fresh categories,
including its own production, as the key strategic
drivers behind its main competitive advantages.
Promotional activities and price positioning remain an
area of focus for the format, as it aims for leadership
in terms of price perception in the supermarket
format across its footprint.

In 2022, the chain made good progress in improving

its operational efﬁciency through workforce time

planning and process optimisation, unlocking
productivity gains. In 2023, the retailer is planning to
increase labour automation to reduce reliance on
manual interventions. In 2022, half of the chain’s
supermarkets were equipped with self-checkouts.

Baton discount store format

The Baton format is a soft discount convenience
store with an average selling space of 370 square
metres and an assortment of about 1,500 SKUs in the
Krasnoyarsk Territory, Republic of Khakassia and
Republic of Tyva. The format’s strengths include fruit
and vegetables as well as bakeries, which operate at
half of its stores. The format does not pursue
promotional activities, as it is guided by an EDLP
strategy. In 2022, the retailer maintained its fast-
paced growth and expanded its footprint to a new
region, the Republic of Tyva, as well as new
communities within the existing footprint in the
Krasnoyarsk Territory and the Republic of Khakassia,
to reach a total of 169 active stores.

The Baton discount store format uses a robust and

effective business model, with its ﬁrst discount stores

launched back in 2015 and annually posting above-
market LFL sales growth. The format sets itself apart

with its simpliﬁed service, limited assortment, as well

as pallet and cardboard display. The format is betting
on fresh products by ramping up its offering in fresh
bakery, fruit and vegetables, meat and dairy products.
The chain targets low- to medium-income customers
who want to save on everyday shopping without
wasting time seeking out the best deals. A high sales
density per square metre of selling space combined

with operational efﬁciency are important components

of the format’s business model. This approach allows
for investments in a daily value proposition that is
extremely attractive amid declining real household
incomes.

The format’s value proposition:

A price leader image across its footprint

A proposition across the ﬁrst-price, low-price and
medium-price segments

A strong presence and affordability of fresh and

ultra-fresh products

Covering more customer needs with one or two
SKUs per need

Proximity to consumers

Developing a joint loyalty programme with
supermarkets, improving the understanding of

customers through big data

Operational efﬁciency is pivotal for the discount store

format. Every year, the chain makes efforts to simplify
its processes and optimise its headcount, with a
standard store counting no more than seven

employees. The retailer has revised its stafﬁng

approach and upgraded store equipment, which is
expected to boost its labour productivity in 2023. In
2023, Baton will install self-checkout machines in its
discount stores – following the lead of the
supermarket format – to reduce the load on
checkouts and redirect its workforce to the sales

ﬂoor. The retailer will continue improving the balance

between its costs and customer experience, offering

the best price to value at its stores.

X5 Club

STRATEGIC REPORT

FOCUS ON CUSTOMER

X5 CLUB

In July 2022, X5 combined the separate loyalty
programmes at Pyaterochka and Perekrestok
under a new processing platform and the new
“X5 Club” brand.

This joint loyalty programme with shared bonus
points now allows customers to earn and spend
points at both chains simultaneously. This offer is one
of a kind on the Russian market and has unlocked a
mechanism for growing the cross-audience of our
businesses.

By 2022-end, over 19,500 stores were connected to
X5 Club, with the number of active loyalty programme
members hitting 69.3 million people and the
programme’s sales penetration reaching 78.3%. The
average ticket of an active customer using a loyalty
card increased twofold versus an active customer not
using a loyalty card.

Consumers can now rack up bonus points more
quickly by selecting their favourite product
categories or reaching a higher membership level.
Around 24% of active monthly customers qualify for
a higher membership level.

We plan to connect other X5’s businesses, including
e-grocery to the programme in 2023, and we are
considering attracting new partners from the market.

In addition, X5 Club is looking to signiﬁcantly expand

its functionality, delivering even greater value for our
customers.

KEY 2022 HIGHLIGHTS

19,500

Stores were connected

to X5 Club

69.3

MLN

Number of active loyalty
programme members

78.3

Programme’s sales
penetration

Paket

STRATEGIC REPORT

FOCUS ON CUSTOMER

PAKET

KEY 2022 HIGHLIGHTS

PLANS FOR 2023

357

THS

Number of subscribers

at the end of 2022

700

THS

Active subscribers

by 2023-end

We implemented a partner
integration with Yandex Plus,
a subscription platform

Launch sales of Paket subscription as an
SKU at the checkouts in stores

2 Explore new partnerships to jointly

promote subscriptions

3 Build partner APIs into the backbone

of the service

We partnered with Yandex
Plus to launch a nationwide
promotion across
Pyaterochka stores, with
attractive offers and prizes

We partnered with the
Perekrestok ready-to-eat
service both offline and online

Paket subscription service is a part of the X5
ecosystem that gives access to all the perks and
benefits available at the Group’s various businesses –
both offline and online. The service was piloted in
2021 and then successfully rolled out to all our
operations in summer 2022.

Paket supports X5 Club loyalty programme, which allows
customers to receive increased cashback in Pyaterochka
and Perekrestok stores, free deliveries, category cashback,
as well as bonuses from partners. Once subscribed,
customers can collect 10x more bonus points versus X5’s
regular loyalty programme.

PLANS FOR 2023

THE EXPRESS DELIVERY

SERVICE WAS AVAILABLE FROM:

4,480

Stores and supermarkets

Dark stores

Regions

We expect the express delivery segment of the e-grocery market to keep
growing. Looking to the year ahead, we aim to remain among the top
players in the Russian e-grocery market. We will continue expanding
specialised dark store infrastructure, which is foundational for boosting

the service’s quality in terms of delivery times and order fulﬁlment accuracy.

We also plan on optimising the service’s economics by driving customer

adoption and improving process efﬁciency. One of our key priorities will be

further developing the underlying technology and the quality of

the customer journey.

Having our own express delivery remains X5’s strategic edge.
At the same time, we continue working closely with
aggregators, which serve as an additional channel

for generating trafﬁc and sales.

as at 31 December 2022

Pyaterochka stores

3,672

Perekrestok supermarkets

808

X5 Digital

Express delivery

In 2022, X5 partnered with the leading food aggregator platforms to expand our
online delivery offering from X5 stores, which allows us to capture untapped

audience segments.

We continue to be one of the leading players in the market thanks to our broad and
loyal customer base and X5’s ability to quickly roll out tailored technology solutions

while maintaining a cost-conscious approach to expanding express delivery services.

The rapid expansion of express delivery services from Pyaterochka
proximity stores and Perekrestok supermarkets was well underway in 2022
despite sluggish consumer sentiment and overall uncertainty in the
Russian economy. The GMV of our express delivery business grew 1.6x to

RUB 50.6 billion, and we delivered signiﬁcant gains in unit economics while

maintaining our strong sales momentum. The express delivery service
supports customer loyalty and expands our share of customers’ wallets.

STRATEGIC REPORT

DIGITAL BUSINESSES

X5 DIGITAL

KEY 2022 HIGHLIGHTS

50.6

RUB

BLN

GMV

+64.2% y-o-y

1,694

RUB

Average ticket

+10.5% y-o-y

MLN

Total orders

+51.4% y-o-y

112.8

THS

Average number of daily orders

in Q4 2022

EXPRESS DELIVERY ORDER DYNAMICS,

mln

Pyaterochka

Perekrestok

2021

2.5

1.1

2021

2.4

1.1

2021

2.4

1.1

2021

2.0

0.9

2021

1.8

0.9

2021

1.6

0.8

2021

1.7

0.8

2021

2.0

0.9

2021

2.4

1.0

2.9

1.1

3.1

1.2

4.4

1.6

Jan 22

1.4

Feb 22

1.3

Mar 22

1.3

Apr 22

1.0

May 22

1.0

Jun 22

0.8

Jul 22

1.0

Aug 22

1.1

Sep 22

1.4

Oct 22

1.7

Nov 22

2.0

Dec 22

2.8

Same-day /

next day delivery

Vprok.ru

STRATEGIC REPORT

DIGITAL BUSINESSES

X5 DIGITAL

KEY 2022 HIGHLIGHTS

26.2

RUB

BLN

GMV

+18.8% y-o-y

4,793

RUB

Average ticket

+5.7% y-o-y

Dark stores

5.4

MLN

Total orders delivered

+14.4% y-o-y

3.4

MLN

MAUs

+2.7% y-o-y

Regions

Order made by customer
via X5 proprietary app or
website

Order received at the
nearest X5 dark store

Order assembled
at X5 dark store

Order picked up
by X5 courier for
delivery

Order
delivered

Business

model

KEY COMPETITIVE ADVANTAGES

Vprok.ru is our online hypermarket, geared
towards customers looking to stock up on
groceries or FMCG products with delivery to
the doorstep, or in some cases to a nearby
5Post pickup point. The hypermarket offers
same-day or next-day delivery to customers
from its core markets, with service further
aﬁeld supported by 5Post.

Vprok.ru is a well-known brand
in the e-grocery market

Wide assortment of 52,300 SKUs

Own logistics infrastructure and in-house
last-mile delivery augmented by 5Post for
additional regional reach

A vast addressable market in cities
of presence

Proprietary customer interface: mobile app
and website

Leverages X5’s purchasing power and
supplier terms

Total control over assortment, pricing,
promotions, and supply chain boosts Net
Promoter Score (NPS)

STRATEGIC REPORT

DIGITAL BUSINESSES

X5 DIGITAL

NET SALES,

RUB mln

NUMBER OF ORDERS AND AVERAGE TICKET

4,492

4,256

4,188

5,765

6,519

5,277

4,990

5,651

1,170

1,000

1,058

1,477

1,643

1,280

1,242

1,219

4,355

4,877

4,513

4,454

4,534

4,745

4,681

5,307

2021

2022

2021

2022

Number of orders, ths

Average ticket, RUB

In 2022 we launched the transformation of the Vprok.ru

business model, looking to drive maximum service efﬁciency:

We consolidated Vprok.ru and express delivery services under X5
Digital to maximise synergies between the two e-commerce

businesses, including in back ofﬁce operations, IT and development

We conducted a comprehensive review of the product range in order
to eliminate slow moving stock while expanding our fresh and ultra-

fresh assortment, primarily in fruits and vegetables

We ﬁne-tuned our marketing strategy to double down on existing

customers, increasing the frequency of their purchases, retention and

repeat visits

Our focus in 2023 will be on securing further gains

in operational efﬁciency by:

reﬁning internal processes to accelerate order picking and fulﬁlment

strengthening our interaction with the existing customer base while

maintaining the inﬂow of new customers

reviewing pricing approaches to increase margins while retaining the

customer’s perception of Vprok.ru as a hypermarket with low prices

PLANS FOR 2023

X5 Retail Group. Годовой отчет за 2022 год (на английском) - часть 3