Russian food retailer X5 Retail has expanded its retail network with the acquisition of 100 stores from Soseddushka retail chain.
With this acquisition, X5’s retail presence in the region will be increased by three times.
Of all the acquired stores, 61 are located in Orenburg while the remainder are in the Orenburg region. The total retail space of these stores is 36,700m2.
The stores will be re-branded as part of the Pyaterochka retail chain and Perekrestok supermarkets. They will be renovated in line with the new Pyaterochka and Perekrestok concepts and will offer an expanded product porfolio including fruits, vegetables, meat, fish, and dairy.
The integration of the new assets is expected to be completed in November this year.
As part of the acquisition, X5 Retail will have access to Soseddushka’s existing Orenburg distribution centre for supplying products to its stores.
Prior to this deal, X5 had 54 Pyaterochka stores and one Karusel hypermarket in the region.
X5 opened its first Pyaterochka store in Orenburg in February last year, marking its entry into the regional market.
As of 31 December 2014, the company had 5,483 company-operated stores, including 4,789 Pyaterochka proximity stores; 403 Perekrestok supermarkets; 82 Karusel hypermarkets; and 209 Perekrestok Express convenience stores, as well as operated 312 stores by franchise partners.