X5 Group (Пятерочка). Годовой отчет за 2021 год - часть 8

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PEREKRESTOK

58

Perekrestok

With 990 stores as of 31 December 2021, Perekrestok is 
Russia’s largest supermarket chain, with a focus on the 
country’s most affluent regions. Perekrestok has been 
successfully rolling out its new supermarket concept, with 
23% of the store base operating nunder the new concept
at the end of the year. 

Online businesses are also a key part of the Perekrestok 
CVP, with 5Post pickup points and express delivery from 
stores all integrated parts of the supermarket’s business.   

Depending on its size, a Perekrestok supermarket will have 
an assortment ranging from 8,000 to 15,000 SKUs, and 
the average selling space is 1,110 sqm.  

990

Perekrestok stores

1,110

SQM

Average selling space

AS OF 31 DECEMBER 2021

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PEREKRESTOK

59

Perekrestok delivered 3.8% LFL sales growth and 
a 13.5% year-on-year rise in revenue. We finished 
the year just shy of 1,000 supermarkets and remain 
Russia’s largest supermarket chain. Thanks to our 
ongoing refurbishment programme and updates to the 
Perekrestok CVP, we continue to attract customers 
who know they can trust Perekrestok to provide a wide 
assortment of quality goods at fair prices. 

We continue to implement our strategy, adapting the 
CVP and testing new formats for Perekrestok stores 
that focus on an emotional shopping experience and 
are tailored to our customers’ needs. With 23% of the 
Perekrestok supermarket portfolio now operating 
under the new store concept, we continue to see 
consistently better LFL and NPS performance after 
refurbishments.  

Efficiency was a major focus for Perekrestok in 2021. 
We piloted and rolled out numerous digital projects to 
reduce losses, automate and streamline store 
processes and use innovative solutions like the self-
checkout machines we developed in-house. These 
initiatives both improved efficiency and helped 
increase retail turnover, and we plan to expand them 
in 2022.  

Sustainability is an important part of what we do. We 
are particularly focused on continuous improvements 
in healthy living, energy efficiency, reducing CO2 
emissions, facilitating recycling, reducing food waste 
and promoting community engagement. During 2021 
these priority areas were an integral part of 
Perekrestok’s business performance.  

Looking ahead, we will focus on addressing the short 
term challenges that we face in the current market 
environment, while continuing to implement strategic 
priorities like digitalisation, sustainability and updated 
Perekrestok's CVP. 

Vladimir Sadovin

ACTING GENERAL DIRECTOR
OF PEREKRESTOK

990

Stores in operation

+6.1% 2020/21 

2021 performance highlights

45

Stores refurbished

636.5 

MLN

Customer visits

+13.2% 2020/21 

3.8

%

LFL sales growth

223

Stores operating under 
new concept

23% of store portfolio

14.4 

MLN

Active loyalty card users

+4.7% 2020/21 

1,099 

THS

SQM 

Selling space

+8.4% 2020/21

31

NPS

+3.6 2020/21  

76

%

Loyalty card penetration 
in traffic

OPERATIONAL 
METRICS

626 

RUB

Average ticket

+0.2% 2020/21 

351.1 

RUB

BLN

Revenue

+13.5% 2020/21

6.9

%

EBITDA margin 
(pre-IFRS 16) 

CUSTOMER 
METRICS

FINANCIAL 
METRICS

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PEREKRESTOK

60

2021 strategic highlights 

Portfolio of private label brands addresses range 
of audiences with competitive products 

Management of private label suppliers streamlined 
with digitalisation  

Customer feedback further integrated into selection 
and quality control 

Continued investment in automation of supplier 
interactions and HR processes 

In-store processes leveraging digital technologies 

Big data tools helping to improve assortment, 
pricing and replenishment 

FURTHER IMPROVE OPERATIONAL 
EFFICIENCY AND SHRINKAGE

PRIVATE LABEL 
DEVELOPMENT

LEVERAGE BIG DATA TOOLS AND 
OMNICHANNEL CAPABILITIES

CUSTOMER-CENTRIC BUSINESS: 
NPS GROWTH AND FEEDBACK

CONTINUOUS ADAPTATION 
OF THE CVP

Testing new formats, such as small 
Perekrestok stores with a limited assortment 
for dense urban environments 

Focus on expanding ready-to-eat and health 
food assortments 

Service quality improving thanks to better 
employee engagement

Successful differentiation from competition, 
with rising share of private label, health food 
and ready-to-eat assortments in overall sales

New supermarket format 
rollout continues 

Perekrestok’s NPS improved from 27 in 2020 to 31 in 2021

Handling of complaints and queries streamlined 
and systematised 

Customer ratings and feedback inform
decision-making on assortment 

Growing share of private label goods
in sustainable packaging 

Basket of Kindness food drives continue to grow

Online businesses: 655 Perekrestok supermarkets 
offer express delivery, with Perekrestok app MAUs 
reaching 3.3 million 

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PEREKRESTOK

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Key operating results

Perekrestok net retail sales by region, 

%

CAGR

2021

2020

2019

2018

2017

Number of stores, eop

Net retail sales, RUB bln

Selling space ’000 

, eop

sqm

Customer visits, mln

11.6%

16.9%

14.6%

11.8%

990

349

1,099

636

933

320

1,014

 562

852

273

879

589

760

231

782

505

638

187

637

407

61.4

17.3

9.6

4.9

6.3 0.6

2021

64.9

15.8

9.4

4.4

5.0 0.6

2020

Ural FD

Volga FD

North Caucasus FD

North-Western FD

Central FD

Southern FD

STRATEGIC 
PRIORITIES 

Continue to adapt CVP and roll out new 
store concept, with focus on efficiency and 
controlling costs 

Refine the CVP with a focus on the 
emotional shopping experience and our 
assortment of fresh, ready-to-eat and 
private label goods

Invest in digitalisation and automation to 
achieve sustainable cost savings 

Further improve speed and accuracy of 
decision-making, as well as automate key 
practices with big data tools 

Expand use of customer feedback as a key 
element of decision-making in the 
business, helping to guide private label 
development, overall assortment and CVP 

Become #1 supermarket in terms of health 
food, ready-to-eat and private label 
assortments 

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PEREKRESTOK

62

Perekrestok’s new store concept reflects the leading 
edge of global food retail, with increased assortments 
of health food, ready-to-eat and ready-to-cook 
offerings. As of the end of 2021, 23% of Perekrestok’s 
990 supermarkets were operating under the new store 
concept.  

We have developed a new mission and positioning for 
Perekrestok, with a focus on the emotional shopping 
experience. Perekrestok’s updated CVP is being 
finalised, with a focus on strengthening fresh 
categories and differentiation.

Updating the value proposition and concept of supermarkets

One important element of Perekrestok’s developing 
CVP is our ready-to-eat assortment. X5 launched its 
own Smart Kitchen in 2019, designed to ramp up our 
own supply of ready-to-eat goods in response to 
demand. During 2021, ready-to-eat assortment sales 
reached RUB 3.5 bln, 67% growth year-on-year.

NPS 31

+

3.6

points y-o-y

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PEREKRESTOK

63

Our private label assortment accounted for 15% of 
revenue in 2021, reaching 18% at the end of the year, 
up from 14% at the end of 2020. Our private labels 
include Green Line healthy foods and a range of other 
brands that cover all price segments.

Ready-to-eat share in sales, 

%

2.5

2020

4.1

2021

With increasing interest in healthy lifestyles among 
consumers, and in line with our commitment to 
support healthy lifestyles as part of our sustainability 
strategy, we are expanding our assortment of healthy 
products and making them more visible in stores in 
order to help customers navigate their way to making 
healthier choices.

Private label share in sales, 

%

14

2020

27

2024E

18

2021

In an environment of declining real disposable 
household incomes and rising costs for labour and 
resources, achieving further breakthroughs in 
operational efficiency is a top priority for Perekrestok.   

Thanks to ongoing initiatives like customer value 
management, as well as automation of forecasting, 
replenishment and interactions with suppliers, we 
continue to be able to maintain profitable operations 
while sharing savings with our customers.    

In 2021, we launched a pilot of our Mobile Assistant, 
which enables automatic routing of shop incidents 
(equipment breakdowns, staff absenteeism, waste 
removal problems, etc.) and sends them directly to 
relevant employees, while also tracking their 
implementation. In 2022, we plan to roll out this 
solution to all Perekrestok supermarkets.  

We have also launched a Digital Operations Assistant 
product, which enables store directors and cluster 
directors to save time in analysing performance. The 
solution highlights stores where performance requires 
attention. In 2022, we plan to expand the number of 
indicators that the system will analyse.  

In 2021, we piloted a Freshness project, aimed at 
improving the perception of quality and freshness of 
Perekrestok supermarkets by extending our 
monitoring of goods to cover their entire journey from 
the producer to store shelves. This includes remote 
quality control at suppliers’ DCs, incoming and 
outgoing quality control at our DCs, monitoring of the 
cold chain at all stages of transportation, management 
of stock levels and quantities, shop standards, etc. This 
project has helped to improve retail turnover and 
reduce losses. In Q4 2021, we rolled out of the project 
in the Central region and in 2022 we plan to extend 
this to all Perekrestok stores. 

Throughout last year, we continued the rollout of our 
lean store project, which is aimed at increasing the 
productivity of store personnel through a convenient 
system of storing goods on roll cages, which are used 
for stocking shelves. On average, a store with lean 
processes spends 7%-10% less time restocking 
shelves. By the end of 2021, around 130 stores were 
involved in the project. For 2022, we plan to continue 
replicating the project, and by the end of the year we 
plan to have around 250 to 300 stores converted to 
lean processes.  

We also installed around 1,500 self-service checkouts 
(SCCs) at Perekrestok supermarkets in 2021. At the 
end of the year, a total of around 4,000 SCCs had 
been installed in 550 stores. SCCs significantly improve 
store productivity, as only one employee is required for 
six SCCs. Queues have also been reduced. We plan to 
install around 1,500 more SCCs in 250 stores in 2022. 

Operational efficiency

Develop and test clustered pricing 
policies 

Rollout of a regional pilot store

Pricing at SKU/store level, based on 
product elasticity

Clustering and assortment 
optimisation using big data solutions

Big data solution to increase accuracy 
of promo forecast

Introduction of individual planograms 
based on JDA

Regional 
model

Inventory

Further development of regional 
logistics 

Synergies with Pyaterochka for remote 
regions 

Further improve staff productivity

Logistics

Matching personnel compensation 
with market benchmarks

Optimise salary in regions 

Transformation of the organisational 
structure: a new organisational model 
for central and regional offices was 
introduced, and operational verticals 
with a focus on increasing territorial 
autonomy and adapting to local 
customer needs was implemented

Personnel

Labour productivity

2020

2021

+7.1%

Personnel

Our employees are one of the keys to our success in 
providing a reliable high level of service to our 
customers. We continue to implement best-in-industry 
practices for our store staff, ranging from improving 
staff lounges and adding new functionality to the 
Perekrestok employee mobile app to expanding 
training opportunities and maintaining ways for staff to 
engage in and share our success.   

In order to further improve efficiency, Perekrestok is 
automating HR processes and implementing a 
personnel planning and management system.  

In a tight labour market, these measures have helped 
us to retain staff while also enabling us to recruit 
efficiently as we open new stores.  

In 2021, our Mobile Workstation product was rolled out 
to all Perekrestok stores. The aim of the product is to 
increase the efficiency of operations, which in turn will 
increase sales, reduce shrinkage and increase 
productivity. The plan for 2022 is to expand the 
functionality of the product to include the receipt of 
goods, the display of goods and the hourly availability 
of goods on shelves. This will further increase sales 
and productivity. 

Big data and omnichannel 
opportunities

Omnichannel retail is increasingly part of the 
Perekrestok CVP, with integrations into express 
delivery as well as 5Post parcel lockers and pickup 
points.   

In addition to these services, we are using X5.ID to 
enable a single sign-on for customers at any stage of 
the customer journey, whether they are logging on to 
Food.ru to discover recipes, placing express delivery 
orders through the Perekrestok mobile app, using their 
loyalty card at a self-checkout machine in a store or 
paying with an X5 Bank branded debit card.  

Looking ahead, we’ll continue to focus on innovation, 
digitalisation and automation of business processes. In 
addition to existing services, we will also test new 
omnichannel solutions that have the potential to 
further enhance our CVP. 

Customer value management

We launched customer value management (CVM) for 
Perekrestok in 2020. CVM uses analytical models to 
automatically generate personalised offers based on 
customer preferences.   

We are building a system that can personalise offers 
for customers at every contact point, at every stage of 
the customer journey. This client-centric approach 
supports long-term cooperation with each customer.   

During 2021, we expanded our CVM product to 
partners and suppliers interested in CVM campaigns. 

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PEREKRESTOK

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KARUSEL

65

Karusel

Following the decision in 2019 to transform the Karusel 
hypermarket format, the process continued in 2021. While we 
believe that many customers will switch to online 
hypermarkets like Vprok.ru Perekrestok for their stock-up 
shopping needs, we are also transferring some Karusel 
stores to Perekrestok to be run as large supermarkets. 

Karusel’s team, in parallel with downsizing its operations, 
focused on the operational efficiency of the stores that 
remain in operation as hypermarkets for the immediate 
future. 

36

MLN

Customer visits

32

RUB

BLN 

Net retail sales

33

Stores in operation

AS OF 31 DECEMBER 2021

128

THS

SQM

Selling space

AS OF 31 DECEMBER 2021