X5 Group (Пятерочка). Годовой отчет за 2021 год - часть 3

STRATEGIC REPORT

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OVERVIEW

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OUR FORMATS

18

Express delivery

5Post

Vprok.ru Perekrestok

 is a last-mile delivery service established in 2019 

that enables e-commerce providers and other X5 digital 
businesses to deliver goods to parcel lockers, cashier 
desks and/or pickup points located at X5 stores. As of 31 
December 2021, 5Post had 22.6 thousand pickup points 
in 17.3 thousand locations across 66 regions of Russia, 
and the business unit delivered a total of 27.0 thousand 
orders during FY 2021. 5Post reached positive EBITDA 
profitability in 2021.

5Post

 

,

million

thousand

1,611

50

19.2 

 114 

 operations were launched in late 

2019. The service offers delivery from local Perekrestok 
and Pyaterochka stores within 50–60 minutes. Express 
delivery is a cross-format project that utilises a 
common digital platform: the formats are responsible 
for assortment and in-store staff to pick orders, which 
are then delivered by a third-party courier. As of 
31 December 2021  express delivery services were 
available from 

 Perekrestok, Pyaterochka and 

Karusel stores in 

 regions across Russia. The service 

handled a total of 

 orders during FY 2021, 

with up to

 orders on peak days.

Express delivery

five

three

million

with more than 22 thousand

 cities

4.7 

 is an online hypermarket that aims 

to address demand from customers looking to stock up 
on groceries and FMCG, with the convenience of 
delivery to their door or to specially equipped parcel 
lockers at X5 Group stores. With 

 large dark stores 

and operations in 

 as of 31 December 2021, 

Vprok.ru Perekrestok handled 

 orders in FY 

2021, 

 orders being 

delivered on peak days.

Vprok.ru Perekrestok

1,611

Number of stores 

5

Large dark stores

22.6

THS

Pickup points and 
parcel lockers

25.7

RUB

BLN

Revenue

4   growth y-o-y

18.7

RUB

BLN

Revenue

+41.5% y-o-y

19.2

MLN

Orders delivered

in 2021

2.6

RUB

BLN

Revenue

4   growth y-o-y

×

UP TO

114

THS

Number of orders

on peak days

4.7

MLN

Orders delivered 

in 2021

66

Regions of Russia

>

22

ths

Number of orders

on peak days

27.0

THS

Orders delivered

in 2021

Digital 

business

Thanks to our strategy aimed at preparing X5 
Group for the future of retail, our digital businesses 
continue to grow at a rapid pace, contributing to 
overall revenue, customer acquisition and 
retention.

×

STRATEGIC REPORT

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OVERVIEW

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RUSSIA’S FOOD RETAIL MARKET 

19

Russia’s food 

retail market 

The Russian food market was worth 
RUB 18.4 trillion in 2021. During the last 
two years, the fastest growth was seen 
in the hard discounter and e-grocery 
segments, where we are actively 
growing our business.

Russian food retail market development

2019

26.6%

21.7%

37.8%

2020

28.9%

20.9%

2.8%

0.9%

12.6%

11.4%

34.1%

2021

29.0%

19.0%

3.4%

2.1%

13.9% 

33.0%

RUB 16,121 bln

RUB 16,587 bln

RUB 18,445 bln

Proximity stores

Supermarkets

Hard discounters

E-grocery

Specialists

Other (e.g., hypermarkets, traditional trade)

We are already the #1 player in the proximity and 
supermarket segments, with our two traditional 
formats, and X5 Group is the absolute leader in 
Russia’s overall food market. We are also one of the 
top players in e-grocery, a rapidly expanding 
segment defined by fierce competition from online 
ecosystems and marketplaces. In the hard 
discounter segment, we are rapidly scaling up the 
operations of Chizhik, which has shown promising 
results through its pilot and initial rollout. 

X5’s position in a changing market

 player with 

 market share in FY 2021

1

12.7%

#

Digital business revenue grew 

by 140%

year-on-year 

 active loyalty card users

62.6 million

2.2%

0.3%

STRATEGIC REPORT

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OVERVIEW

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RUSSIA’S FOOD RETAIL MARKET 

20

Food market trends in 2021

Macroeconomics and government’s role

Market

Customer

Macroeconomic and regulatory factors became 
increasingly important for the food market in 2021, 
as food supplies, labour and other resources all 
became more scare and caused prices to rise. This 
is partly a result of, and compounded by, the ongoing 
impact of the COVID-19 pandemic, which has seen 
governments worldwide introduce measures aimed 
at limiting the impact of the virus while also seeking 
to prevent disruptive spikes in the cost of living.

In parallel to this, consolidation in the Russian food 
market accelerated, with several large M&A deals in 
2021 involving top-10 players. At the same time, the 
maturity of the food market, combined with 
the emergence of digital ecosystems, has meant the 
emergence of new formats such as hard discounters 
and specialist chains, as well as competition from 
digital platforms that see food as a key way to 
maintain engagement with their audiences.

Customer behaviour is also changing, as decreasing 
real disposable household incomes mean growing 
demand for rational food shopping options and 
trading down. At the same time, the pandemic and 
continued digitalisation of the economy are driving 
further rapid growth of online services, especially 
in larger cities across Russia. 

Increasing cost of supply 
and resources

Consolidation
of market players

Decreasing real disposable 
household incomes

Accelerated development 
of hard discounters and 
specialist chains

Increasing government 
regulation of pricing

Ecosystems and 
marketplaces are competing 
with retailers

Trading down and rational 
customer behaviour

A “new normal” in COVID-19 
pandemic environment

Growing popularity of online 
services

1

2

3

1

1

2

2

3

3

STRATEGIC REPORT

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OVERVIEW

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RUSSIA’S FOOD RETAIL MARKET 

21

The wave of consolidation that took place in 2021 meant that, 
for the first time in five years, X5 Group did not grow revenue 
at a faster pace than the remaining top-10 food market 
players, combined. 

X5 vs Russian food retail in top-line growth

30

25

20

15

10

5

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

7%

10%

6%

3%

2%

5%

4%

8%

19%

8%

9%

19%

28%

28%

25%

13%

14%

11%

18%

8%

20%

23%

21%

18%

9%

10%

10%

21%

14%

14%

9%

12%

11%

8%

2%

5%

4%

2%

11%

X5 y-o-y revenue growth

Top 10

Market

Food CPI

Top 10 Russian food retailers, 

% market share 

Top 10 Russian online food retailers, 

% market share 

2021

2020

1. X5 Group

12.7%

12.6%

2. Magnit

9.5%

8.7%

3. Mercury Retail

5.9%

6.2%

4. Lenta

2.4%

2.4%

5. Svetofor

1.8%

1.3%

6. Auchan

1.4%

1.4%

7. METRO

1.1%

1.2%

8. O'Key

1.1%

1.1%

9. Vkusvill

1.0%

0.8%

10. Monetka

0.8%

0.8%

TOTAL TOP 10

37.5%

36.5%

2021

2020

1. SberMarket

13.7%

11.2%

2. X5 Group

12.9%

13.0%

3. Vkusvill

12.9%

9.4%

4. Yandex

10.5%

7.9%

5. Samokat

10.4%

6.3%

6. Ozon

7.9%

8.3%

7. Wildberries

7.7%

7.8%

8. Utkonos

3.7%

9.0%

9. Delivery Club

3.3%

0.6%

10. Lenta

2.4%

0.7%

TOTAL TOP 10

85.4%

74.1%

Source: Rosstat, Infoline, X5 analysis

Source: Infoline

STRATEGIC REPORT

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OVERVIEW

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RUSSIA’S FOOD RETAIL MARKET

22

Russian food retail 

in the global context

Russia is the eighth-largest food retail market 
globally, according to Euromonitor, but has 
substantially less selling space per capita than key 
developed markets.

Grocery retail market size globally in 2021, 

USD bln

1,266

1,444

China

USA

254

UK

Russia

250

India

435

Turkey

70

Germany

283

Poland

69

Japan

281

France

280

Brazil

45

3.2%

3.0%

4.4%

0.6%

(2.8%)

(0.2%)

0.4%

(2.9%)

(5.3%)

1.2%

(8.7%)

Modern grocery retail selling space per thousand people in 2021, 

sqm

Source: Euromonitor, Infoline (market size for Russia only) 
Note: All number are excluding VAT/sales tax

517

524

Canada

USA

289

UK

Russia

272

Germany

468

Turkey

214

France

406

China

149

Spain

361

Poland

337

South Africa

98

CAGR 2011-2021

STRATEGIC REPORT

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OVERVIEW

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RUSSIA’S FOOD RETAIL MARKET 

23

Share of top 5 grocery retailers globally in 2021, 

%

The combined market share of Russia’s five largest 
grocery retailers was 32% in 2021, while this number 
reaches as high as 76% in other European markets 
and 46% in the US market. 

The main driver of growth for Russian food retail 
businesses has shifted from rapid expansion 
to consolidation.

24.4

62

4.2

Auchan

5.0

PPHU

14.0

Schwarz

14.1

Eurocash

Jeronimo Martins

Poland

23.2

75

1.7

17.4

19.3

Globus 

13.3

Aldi 

Schwarz

Rewe 

Edeka

Germany

57

7.4

Auchan

8.1

Systeme U Centrale

12.9

E Leclerc

13.0

ITM

16.0

Carrefour

France

61

7.6

Aldi 

7.8

Morrison

10.4

Walmart

11.5

Sainsbury's

23.5

Tesco

UK

32

1.8

Svetofor

12.7

2.4

Lenta

5.9

Mercury Retail

9.5

Magnit

X5 Group

Russia

76

7.0

Svaz Ceskych

9.5

Tesco

12.2

Ahold Delhaize

17.1

Rewe

30.5

Schwarz

Czech Republic

46

3.7

Publix

3.8

Ahold Delhaize

4.8

Albertsons

8.1

Kroger

25.2

Walmart

USA

33

1.6

Carrefour

5.7

Yildiz

6.0

Migros

7.9

A101 Yeni

11.8

BIM

Turkey

Source: Euromonitor, Infoline (for Russia only)

STRATEGIC REPORT

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OVERVIEW

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RUSSIA’S FOOD RETAIL MARKET

24

Russian grocery retail market dynamics, 

%

Overall, X5’s current portfolio of is present in what 
accounts for over 60% of the market today.

While we act as a consolidator and grow our share 
of the market, we also expect the continued shift 
to modern retail and the growing role of federal players 
like X5 Group. 

In this context, we have succeeded in growing 
primarily through organic expansion of our 
business, but around half of new openings are 
replacing smaller, less efficient grocery retailers. 

As the market expands and consolidates, we 
also expect to see the fastest growth from 
segments where X5 is already present: 
proximity/discounters, online and hard 
discounters.

70

19

49

14

64

18

23

22

30

81

51

86

36

82

77

78

Middle East

and Africa

Asia-

Pacific

Eastern

Europe

Western

Europe

Latin

America

Australia

North

America

Russia

26

2018

42

42

32

24

2019

43

33

21

2020

37

22

2021

41

37

Traditional vs Modern retail in Russia and across key world regions in 2021, 

%

Market segments

Modern retail

Traditional retail

Regional modern trade

Traditional trade

Federal chains

Source: Euromonitor, Infoline for Russia 

Source: Infoline

9.0

6.9

6.0

5.8

3.4

3.0

2.1

2.0

1.9

1.1

1.0

UK

USA

France

China

Canada

Russia

Poland

Spain

Turkey

Germany

South

Africa

STRATEGIC REPORT

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OVERVIEW

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RUSSIA’S FOOD RETAIL MARKET 

25

Online grocery sales penetration globally, 

%

E-grocery market development, 

%

Source: Euromonitor, Infoline for Russia

2019

2.3%

15.3%

18.3%

16.2%

48.0%

2020

27.3%

19.1%

16.9%

29.7%

7.1%

2021

39.4%

22.8%

17.2%

16.4% 

4.3%

RUB 43 bln

RUB 155 bln

RUB 383 bln

Express delivery

Delivery services

Online marketplaces

Online hypermarkets

Other channels

Source: Infoline