X5 Group (Пятерочка). Годовой отчет за 2021 год - часть 4

Selected macroeconomic data

Trends in the economy and consumer behaviour 

STRATEGIC REPORT

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OVERVIEW

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RUSSIA’S FOOD RETAIL MARKET

26

Q1

Q2

Q3

Q4

FY

YEAR-ON-YEAR COMPARISON, %

RUSSIAN MACROECONOMIC INDICATORS,

Q1

Q2

Q3

Q4

FY

RUB/USD exchange rate, weighted average for the period

72.0

74.2

74.3

76.2

73.6

72.3

66.1

73.7

72.6

73.5

Real GDP

(2.7)

10.5

(0.7)

(1.8)

(3.5)

(7.8)

1.4

4.7

9.1

4.3

CPI

3.4

6.0

5.6

4.4

3.5

3.1

2.4

6.7

8.3

6.8

Food inflation

3.9

7.3

7.4

5.8

4.3

3.6

2.0

8.4

10.8

8.1

Real wage growth

3.8

5.5

1.6

2.2

1.8

(0.1)

6.2

2.9

2.8

2.0

Real income growth

(1.4)

7.9

(3.7)

0.5

(3.1)

(6.4)

3.0

3.4

0.8

8.1

Unemployment rate

5.8

4.9

5.6

6.1

6.3

6.0

4.6

4.8

4.3

4.4

Retail trade turnover, nominal 

0.7

32.4

5.4

3.8

3.5

(12.1)

7.5

15.9

14.3

14.2

Food retail trade turnover, nominal 

2.9

15.8

4.1

4.0

3.2

(2.5)

7.0

11.2

13.3

11.4

2020

2021

According to preliminary estimates, GDP grew by 
4.7% in 2021. By the end of Q3 2021, the economy 
had recovered to pre-crisis levels at the end of 2019.

GDP growth was driven by a recovery in the global 
economy and strong domestic demand. The 
average annual inflation rate increased from 3.4% 
to 6.7%, while wage growth increased from 7.3% 
to 9.8%. Lending to consumers accelerated to 
20-25% despite the fact that the Bank of Russia 
doubled the key rate (from 4.25% to 8.5%). 

Monetary policy remained soft due to the simultaneous 
increase in the key rate and inflation. The average 
annual RUB/USD exchange rate was 73.7, compared 
with 72.0 a year earlier. At the same time, the exchange 
rate demonstrated low volatility due to high prices for 
raw materials and limited service imports.

The rapid recovery in GDP was driven by a rebound in 
external demand for commodities and domestic 
demand resulting from the economic stimulus brought 
about by the combination of fiscal and monetary 
policies. Low interest rates across the economy and 
the extension of subsidised mortgage interest rates 
amid rising inflation and inflationary expectations 
stimulated consumer demand.   

The labour market experienced a shortage due to a 
low influx of labour migrants and a high rate of 
mortality. At the same time, the demand for labour 
quickly recovered as the economy grew. 
Unemployment reached a record low of 4.3% in 
December 2021 (4.8% average in 2021). In addition, due 
to the shrinking labour force, the number of people 
unemployed reached a record low of 3.2 million. 

The strongest demand for labour was seen in sectors 
such as construction, retail trade and transport. Prior to 
the pandemic, a considerable percentage of the 
vacancies in these industries were filled by migrant 
workers. As a result of imbalances in labour supply and 
demand, wage growth accelerated from 7.3% to 9.8%  

Wages and one-time cash benefits from the state were 
key drivers of the growth in household incomes. On 
average for the year, wages increased by almost 9.8%, 
while the average annual inflation rate was 6.7%. The 
total cash benefits paid out by the state in August and 
September amounted to 0.5% of GDP, or almost RUB 
700 billion. Up to two-thirds of these funds were used 
for current consumption, including the food market.  

Accelerating inflation threatened to offset any growth 
in real disposable incomes, and increased inflationary 
expectations stimulated lending. 

Accelerating inflation both in Russia and throughout 
the world was the result of volatile imbalances in supply 
and demand in markets for goods and services as a 
result of the simultaneous impact of stimulus policies 
and ongoing pandemic restrictions on the functioning 
of the economy. By the end of 2021, inflation had 
increased to 8.4%, while food inflation reached 10.6%, 
its highest point since 2015. In 2020, prices increased 
by 4.9% and 6.7%, respectively.  

In 2021, amid a recovery in household incomes, the 
grocery retail market grew by 2.3% in real terms and by 
11% in nominal terms. Overall, retail trade turnover 
increased by 7.3% and 15.9%, respectively. Alongside 
the increase in turnover, consumers adapted to rapidly 
rising prices. Consumers began to take a more careful 
approach to spending: they became more price-
sensitive, and their interest in promotions and 
discounts increased.

STRATEGIC REPORT

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OVERVIEW

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RUSSIA’S FOOD RETAIL MARKET

27

REGULATIONS

MAIN LEGISLATIVE AMENDMENTS

DATE OF ENTRY INTO FORCE

Ban on the remote sale 
of nicotine-containing products

Tobacco heating devices and products with heated tobacco were designated as a separate 
category of goods called nicotine-containing products and devices for consuming 
nicotine-containing products.  

A ban on the remote sale of nicotine-containing products was introduced. 

For more details, see Federal Law No. 303-FZ of 31 July 2020

28 January 2021

Restrictions on the sale of tobacco products 
manufactured in or imported into the Russian 
Federation before 1 April 2021

Tobacco products manufactured in or imported into the Russian Federation before 1 April 2021 
with a maximum retail price indicated on the consumer packaging (pack) of tobacco products that 
is below the sole established minimum price of tobacco products may be sold until 1 July 2021. 

For more details, see Federal Law No. 504-FZ of 30 December 2020

1 April 2021

New requirements for employers

From 1 March 2022, the quota for the hiring of disabled persons shall be considered to have been 
fulfilled by an employer in the event that employment relationships with disabled persons are 
formalised in accordance with the established procedure as part of the employer’s obligation 
to employ disabled persons in accordance with the established quota.    

From 1 January 2022, employers whose average number of employees for the previous calendar 
year exceeds 25 and newly created entities whose average number of employees exceeds 
the specified limit are required to publish on the “Work in Russia” digital platform or other sites 
information on the need for employees and on hiring conditions, on the availability of jobs 
and vacant positions and on special workplaces equipped (outfitted) for work to be performed 
by disabled persons.

For more details, see Federal Law No. 219-FZ of 28 June 2021

1 July 2021, with the exception 
of certain provisions

Legislative changes

REGULATIONS

MAIN LEGISLATIVE AMENDMENTS

DATE OF ENTRY INTO FORCE

Requirements for providing data on advertising to 
Roskomnadzor

Advertisers who have placed advertisements online and who meet the criteria determined by 
the Government of the Russian Federation are required to provide information about such 
advertising to Roskomnadzor.  

In the event that Roskomnadzor adopts a decision to ban advertising on sites belonging to 
foreign entities, a ban on the distribution of advertising on such sites shall be in place. 

For more details, see Federal Law No. 347-FZ of 2 July 2021

2 July 2021

Amendments to the classification of types
of alcoholic products

The notion of “fruit wine” was replaced by “fruit-based alcoholic product”.  

The sale of fruit wines shall remain possible until the end of this year.  

Cognac and brandy produced and recorded in the Unified State Automated Information System 
no later than 2 July 2021 are subject to retail sales in the manner and on the terms that were in 
effect prior to 2 July 2021. But they are to be displayed separately.  

The term “sparkling wine (champagne)” has been replaced by the terms “sparkling wine, 
including Russian champagne” and “sparkling wine”. From a literal interpretation of the law, it 
follows that imported products must have the name “sparkling wine”.  

The classification of wines with a protected geographical indication (PGI) / protected 
designation of origin (PDO) is carried out on the basis of the Russian national system for the 
protection of wine products.  

For more details, see Federal Law No. 345-FZ of 2 July 2021

2 July 2021

A list of imported goods subject to traceability (goods 
for which businesses must submit reports to the 
Federal Tax Service) was approved

The list of goods subject to traceability includes household refrigerators and freezers, 
refrigeration and freezer equipment, forklift trucks and other loaders, monitors and projectors. 

For more details, see Decree of the Government of the Russian Federation No. 1110 of 1 July 2021

8 July 2021

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OVERVIEW

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RUSSIA’S FOOD RETAIL MARKET

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Legislative changes

REGULATIONS

MAIN LEGISLATIVE AMENDMENTS

DATE OF ENTRY INTO FORCE

Description of cases in which traceability is applied

Traceability applies in relation to goods specified in the List of Goods in the following cases: 

goods imported into the Russian Federation and released for domestic consumption; 

goods imported into the Russian Federation and confiscated or appropriated as the property 
(income) of the Russian Federation; 

goods imported into the Russian Federation and seized pursuant to a court decision for 
payment of duties and taxes;  

goods imported into the Russian Federation from the Eurasian Economic Union, with the 
exception of customs transit;  

goods previously imported into the Russian Federation and that are located in the Russian 
Federation on the day the List of Goods enters into force (amendments to supplement the 
List of Goods). From the date of the entry into force of the List of Goods (8 July 2021), entities 
involved in the sale of goods shall be required to submit a notification of their inventories of 
goods to the Federal Tax Service of Russia not later than the date of transactions involving the 
goods. 

For more details, see Decree of the Government of the Russian Federation No. 1108 
of 1 July 2021

8 July 2021

Amendments to the Law on Advertising

The distribution of auditory advertising using audio equipment mounted and placed on external 
walls, roofs and other structural elements of buildings and other structures is prohibited. 

For more details, see Federal Law No. 150-FZ of 26 May 2021

25 July 2021

STRATEGIC REPORT

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OVERVIEW

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RUSSIA’S FOOD RETAIL MARKET

29

Legislative changes

REGULATIONS

MAIN LEGISLATIVE AMENDMENTS

DATE OF ENTRY INTO FORCE

Labelling rules for bottled water

The rules specify:

the procedure for labelling bottled water

the procedure for information exchange between entities involved in the sale of bottled water 
and the state information system for monitoring the sale of goods

the specifications for means of identification

the procedure for entities involved in the sale of bottled water to provide information to the 
operator of the information system for monitoring the placement of bottled water on the 
market, the selling of bottled water and the withdrawal of bottled water from the market. 

For more details, see Decree of the Government of the Russian Federation No. 841 
of 31 May 2021  

1 September 2021

Suspension of the enforcement of compliance with the 
requirements for wine products

The enforcement of compliance with the requirements for wine products in terms of the 
classification thereof was suspended until 31 December 2021. 

For more details, see Decree of the Government of the Russian Federation No. 1807 
of 22 October 2021

22 October 2021

Amendments to the Labour Code of the Russian 
Federation regarding electronic document 
management

Provisions regulating electronic document management (EDM) in the area of labour relations 
were added to the Labour Code of the Russian Federation.  

The obligation to issue a hiring order was abolished. This is now the right of an employer.  

Procedures were established for the use of EDM, for the hiring of employees by employers using 
EDM, and for interaction between employers and employees through EDM. Employers have the 
right to use EDM on the basis of a by-law. 

For more details, see Federal Law No. 377-FZ of 22 November 2021

1 November 2021

STRATEGIC REPORT

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OVERVIEW

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RUSSIA’S FOOD RETAIL MARKET

30

Legislative changes

REGULATIONS

MAIN LEGISLATIVE AMENDMENTS

DATE OF ENTRY INTO FORCE

The introduction of administrative liability 
for the sale of medicines without identification 
and tobacco products without a label

Administrative liability was introduced for committing the following offences:

selling pharmaceutical products for medicinal purposes without affixing identifying information 
or in violation of the procedure for affixing identifying information in the event that the 
affixation of such identifying information is obligatory;

selling goods and products, with the exception of medicines and tobacco products, without 
a label and/or without affixing information as required by the laws of the Russian Federation, 
as well as in violation of the established procedure for the corresponding label and/or the 
affixation of information; 

selling tobacco products without a label and/or without affixing information as required 
by the laws of the Russian Federation, as well as in violation of the established procedure 
for the corresponding label and/or the affixation of information;  

failure to provide required information and/or violation of the procedure and deadlines 
for submitting said information

For more details, see Federal Law No. 204-FZ of 11 June 2021

1 December 2021

The requirements for the carriage of goods 
by road and the procedure for issuing consignment 
notes were updated

The requirements for the carriage of goods by road were updated. The procedure for issuing 
or generating a consignment note was formalised in terms of the requirements for completing 
said consignment notes; the form that a consignment note must take was specified, as were 
the requisite details of an order for the provision of a vehicle.

For more details, see Decree of the Government of the Russian Federation No. 2116 
of 30 November 2021

1 January 2022, with the exception 
of certain provisions

STRATEGIC REPORT

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OVERVIEW

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RUSSIA’S FOOD RETAIL MARKET

31

Legislative changes

REGULATIONS

MAIN LEGISLATIVE AMENDMENTS

DATE OF ENTRY INTO FORCE

Amendments to the rules for labelling dairy products

Amendments to the rules for labelling dairy products by means of identification shall enter into 
force as of 1 March 2022. In particular, the conceptual framework was expanded, the actions of 
sellers of cheeses and dairy products with a shelf life of up to 40 and of more than 40 days were 
clarified, the procedure for registering dairy products in the subsystem of the national catalogue 
of labelled goods was clarified, and the procedure for submitting information to the information 
system for monitoring in relation to dairy products was clarified, etc.

For more details, see Decree of the Government of the Russian Federation No. 2099 
of 15 December 2020

1 March 2022, with the exception of certain 
provisions

New unified lists of products subject to mandatory 
certification and of products subject to a declaration 
of conformity 

New unified lists of products subject to mandatory certification and of products subject to 
a declaration of conformity were approved. 

For more details, see Decree of the Government of the Russian Federation No. 2425 
of 23 December 2021

1 September 2022, with the exception of certain 
provisions

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RUSSIA’S FOOD RETAIL MARKET

32

Legislative changes

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STRATEGIC REVIEW

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CEO STATEMENT

33

CEO statement

Igor Shekhterman

X5 CHIEF EXECUTIVE OFFICER, CHAIRMAN 
AND MEMBER OF THE MANAGEMENT 
BOARD

After successfully navigating the unexpected 
storm brought on by the COVID-19 pandemic in 
2020, X5 adapted to accelerated changes in our 
market and maintained its growth throughout 
2021. Despite several significant external factors 
that continue to impact the Company as we enter 
2022, namely challenging macroeconomic factors 
that affect everything from labour supply to price 
inflation and consumer sentiment, and fierce 
competition both in offline and online, the 
Company has maintained its strong performance 
and high growth level.  

Dear stakeholders,