X5 Group (Пятерочка). Годовой отчет за 2021 год - часть 9

Key operating results

2021 highlights

Karusel net retail sales by region, 

%

2021

2020

2019

2018

2017

Number of stores, eop

Net retail sales, RUB bln

Selling space ’000

, eop

 sqm

Customer visits, mln

33

32

128

36

56

56

222

68

91

87

364

121

94

91

382

132

93

89

385

135

68.2

10.3

16.6

0.4

3.1 1.4

2021

57.1

19.1

17.6

2.4

2.9

0.9

2020

Southern FD

Volga FD

North Caucasus FD

North-Western FD

Central FD

Ural FD

DIGITAL
TRANSFORMATION 

Karusel continues to maintain a mobile app that 
enables customers to manage their loyalty 
programme, receive personalised offers and submit 
ratings or reviews of goods. The Karusel mobile app 
uses the X5.ID single sign-on, meaning users can 
use the same login and personal data across X5 
services, receiving the same personalised approach 
no matter where they shop. Mobile app users 
accounted for 41% of retail turnover in 2021, 
compared with just 16% in December 2020.   

We also implemented the “digital store director” 
programme, which helps to streamline the 
workload for store management personnel and 
automate inventory monitoring processes.

OPERATIONAL 
EFFICIENCY

Throughout the transformation process, Karusel 
has remained focused on efficiency. We have 
implemented a “multi-skill” approach to staffing 
stores, so that now 100% of floor staff are able to 
work at tills, stocking shelves, at service desks or in 
the storeroom.  

Even as the store base shrinks, we continue to 
focus on efficient management of rental space in 
our stores. 

LOYALTY  
PROGRAMME 

Loyalty card penetration in Karusel sales was 93% 
in FY 2021, while penetration in traffic was 86% 
for the same period.  

STRATEGIC REPORT

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REVIEW BY FORMATS

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KARUSEL

66

STRATEGIC REPORT

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REVIEW BY FORMATS

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CHIZHIK

67

Chizhik

After launching our hard discounter format Chizhik in 2020, 
we announced official rollout plans in 2021, with a target of 
opening around 300 stores in 2022.  

Chizhik aims to address rational shoppers looking to get 
reliable value and everyday low prices. We have built the 
format from the ground up to run efficiently, with every 
process optimised.  

A typical Chizhik store has 250–300 square metres of selling 
space and an SKU range of 750–800 goods. Our aim is for 
private labels with an attractive value proposition to account 
for up to 75% of the assortment, contributing to our ability to 
help customers save 20%-25% vs shopping with peers.   

25

%

Cost savings for customers 
in Chizhik stores

UP TO

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CHIZHIK

68

We completed the Chizhik pilot in 2021 and are now 
in the process of scaling up and replicating the project 
to achieve a rapid expansion of the format in the 
coming years. 

The Chizhik store concept is designed for rational 
buyers who value their time and money but are 
unwilling to compromise on product quality. Our hard 
discounter format means we are able to offer low 
prices based on constant optimisation of costs and 
business processes, as a well as a high level of quality 
of private label brands.   

One of our key focuses in 2021 was the ramp-up of our 
private label assortment: we launched over 300 private 
label products during the year, adhering to our strict 
quality control systems, which are based on product 
quality monitoring and customer feedback analysis. 
We also finalised the store opening process, from 
selection criteria for new sites to equipment standards 
and formalising key business processes.  

By the end of 2021, we had completed hiring for the 
Chizhik management team, tested and finalised the 
format’s business model and established a clearly 
defined three-year strategic plan. Through the pilot 
phase, we verified key assumptions of our hard 
discounter business model all the way down to the 
store level, and now we are ready for scaling up.   

We are optimistic about the outlook for Chizhik: our 
hard discounter format is certain to occupy a strong 
position in its market segment, which is expected to 
grow quickly in the coming years.   

We plan to become masters of decentralisation, 
building independent regional teams that retain the 
Chizhik DNA as we grow. We will also launch full-scale 
and efficient logistics to support our expansion, while 
always remaining focused on cost optimisation and 
business efficiency. Of course, our ultimate goals are to 
deliver impressive results to our stakeholders and 
unbelievable quality goods at affordable prices to our 
customers. 

Ilya Yakubson

DIRECTOR OF CHIZHIK

Key indicators

2.9 

RUB

BLN

Net retail sales

5.9 

MLN

Customer visits

568

RUB

Average ticket

 STRATEGIC 

HIGHLIGHTS 

2021

KEY OPERATING 
RESULTS 

20 

THS

SQM

Selling space

72

Stores in operation

 PERFORMANCE 

HIGHLIGHTS 

2021

2021

2020

Number of stores, eop

Net retail sales, RUB bln

Selling space ’000 sqm, eop

Customer visits, mln

72

2.9

20

5.9

4

0.05

1

0.1

Completed pilot stage and finalised business model, 
processes and strategic goals

Ramped up private label assortment to over 300 items 

Began roll out stage with plans to open up to 300 
stores in 2022

EDLP positioning

Savings of up to 20%-25% compared with peers

Price

Close proximity to households

Narrow assortment — saving time on product 
choice

Convenience  

Young, friendly in-store personnel 

Modern, simple stores

Atmosphere 

Affordable prices

Taking care of families by saving time 
and money (food budget)

Social 
responsibility

Basic assortment covering 50%-60% 
of customer needs

High-quality of private labels in line 
with top brands

Assortment

CVP

The Chizhik CVP aims to meet demand for a rational 
shopping experience where customers can save money 
while getting quality and value they can rely on.

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CHIZHIK

69

A typical Chizhik store is about 400 sqm, of which 
270–300 sqm is the sales floor. We have optimised the 
assortment matrix with just 750-800 SKUs and pricing 
that is 20%-30% lower than the benchmark for 
equivalent products. This helps us to achieve higher 
sales densities than in typical convenience stores.   

Each store has a laser focus on productivity, with only 
seven full-time employees, low shrinkage and 
optimised processes.

Operational effiency is at the core of our business 
model, drawing from the extensive experience and 
unique know-how of the X5 and Chizhik project teams. 

Operational efficiency

At present, Chizhik already has over 300 private label 
goods in its assortment. These currently account for 
around 30% of sales. Our longer-term goal is for 
private label goods to account for 75% of our total 
assortment. 

The key focus areas of our private label strategy are 
quality and supply chain efficiency. We handle 
complaints quickly and efficiently, and strive to 
demonstrate to customers that we are being 
responsive to their feedback. To support supply chain 
efficiency, we rely primarily on shelf-ready packaging 
(SRP) for goods, significantly reducing the amount of 
time needed to stock shelves. 

Private label

Plans 

for 2022

Launch and finalise the process for replicating the 
Chizhik model as the network expands, create 
independent regional teams

Launch highly efficient logistics operations in several 
Russian regions

Open around 300 stores in nine regions

Implement digital initiatives, such as launching a 
mobile app, automating the handling of customer 
feedback and testing delivery services from Chizhik 
stores 

Raise the share of private label to more than 40% of 
the assortment 

Our aim is to make private labels 
market leaders

Market-leader quality

Customer tests

Proper ingredients

Product

Development of packaging

Development of SRP boxes

Working with mix boxes

Packaging

EDLP strategy

20%-30% gap to brand names

10%-15% gap to private labels

Price

STRATEGIC REPORT

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REVIEW BY FORMATS

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CHIZHIK

70

STRATEGIC REPORT

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DIGITAL BUSINESSES

|

EXPRESS DELIVERY

Express delivery

120

100

80

60

40

20

Express delivery order dynamics, 

ths

Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

Total

Pyaterochka

Perekrestok

Okolo

Our express delivery business 
continued to grow at a fast pace 
in 2021, with GMV rising more 
than fourfold year-on-year to 
RUB 30.8 billion. 

In an increasingly crowded and competitive market, we 
managed to remain one of the market leaders thanks to our 
extensive loyal customer base and X5 Group’s ability to 
quickly roll out new technology solutions to its existing store 
network.  

One of the top priorities throughout 2021 was to roll out 
express delivery service to new regions, and the total number 
of regions of operations increased from 13 at the end of 2020 
to 50 at the end of 2021. This expansion means that 
Pyaterochka has launched express delivery in nearly every 
city where it operates with a population over 500 thousand, 
while Perekrestok launched its service in almost every region 
of presence. 

25.7 

RUB

BLN

Net sales

19.2 

MLN

Total orders

1,533 

RUB

Average ticket

1,611 

Stores

50

Regions

69.8 

THS

Average number 
of daily orders

in Q4 2021

2021 highlights

Express delivery service was
available from : 

¹

923 Pyaterochka stores

30 Pyaterochka dark stores

655 Perekrestok stores

3 Karusel stores

in

1 As of 31 December 2021

71

STRATEGIC REPORT

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DIGITAL BUSINESSES

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EXPRESS DELIVERY

72

Plans for 2022

During 2021, we significantly improved the unit economics 
of the business, reaching positive contribution margins in 
some formats/regions, with scale effects and process 
improvements helping to reduce pick-and-pack and 
delivery costs per order.  

Directed by customer feedback and a commitment to 
delivering the best customer experience, we worked hard 
to develop the express delivery mobile app functionality, 
primarily expanding omnichannel services as well as 
further integration with other X5 projects such as the 
Food.ru media platform. 

How express delivery 
is managed

We view express delivery services as an extension of the 
customer value propositions of X5’s retail formats. The 
express delivery technology platform is a solution that was 
developed in house based on X5’s decentralised, multi-
format business model. This means that each of our formats 
is responsible for managing the customer experience, 
assortment and marketing. 

The technology platform and 
courier delivery services used 
by the formats are managed 
centrally by an internal service 
unit, X5 Digital.

Amid the challenging macroeconomic environment, 
our main focus for 2022 will be to ensure that express 
delivery does not undermine the economics of our 
main business. We are confident in our ability to 
achieve sustainable profitability of the business 
segment in 2022, thanks in part to improved 
operational efficiency and unit economics. In the short 
term, we plan to step back from the current level of 
promotional and marketing activity and pause regional 
expansion until we see an improvement in the overall 
economic situation in the country.  

At the same time, we will continue to focus on 
maintaining and improving the high quality of our 
delivery service, including delivery time and order 
fulfilment accuracy. Despite the macroeconomic 
headwinds, we expect to see continued strong 
competition in the express delivery segment. In 
response, we will aim to increase customer loyalty and 
strengthen our market position by expanding the 
range of our service offering along with other 
elements of the customer journey.  

In 2021, the first specialised dark stores for express 
delivery were launched; this process will continue in 
2022, primarily in large cities. The transition to express 
delivery from dark stores will help to increase the 
speed and precision of order fulfilment while also 
improving the economics of the service. In this 
process, we are going to use centralised infrastructure 
for both of X5’s retail formats to maximise economic 
efficiency.  

 

STRATEGIC REPORT

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DIGITAL BUSINESSES

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VPROK.RU PEREKRESTOK

73

Vprok.ru Perekrestok

18.7 

RUB

BLN

Revenue

+41.5% y-o-y 

5

Large dark stores 

and 1 mini-dark store

74

Regions

vs 12 in 2020

4,533

RUB

Average ticket 

+9.4% y-o-y 

4.7

MLN

Total orders delivered

+30.1% y-o-y

2.6 

MLN

Website MAUs 

0.9 

MLN

Mobile app MAUs 

+21.6% y-o-y

<

8

RUB

BLN

Total capex 

since 2017

Online hypermarket

Order made by 
customer via X5 
proprietary app 
or website

Order received 
at the nearest 
X5 dark store

Order assembled 
at X5 dark store

Same-day / next day delivery

Order picked up 
by X5 courier for 
delivery

Order 
delivered

2021 highlights

Business model

Vprok.ru Perekrestok is our online hypermarket, 
which offers customers looking to stock up on 
groceries to have FMCG products delivered 
to their door or in some cases to a nearby 5Post 
pickup point. 

The hypermarket offers customers same-day or 
next-day delivery in its core markets, with service 
to a wider geography supported by 5Post.