Russian food retailer X5 Retail Group has partnered with privately owned bank Sovcombank to establish a joint venture (JV) for online orders distribution.
The JV will use a network of parcel lockers from Sovcombank owned Digital Technologies of the Future (TsTB).
TsTB has a network of 500 parcel lockers operating under the Halva brand in Moscow, St Petersburg, Nizhny Novgorod, Novosibirsk, Kazan and other major Russian cities.
As part of the deal, the JV will focus on increasing the parcel lockers network to 1,500 by the end of 2019.
X5 Retail Group strategic business development director Igor Pletnev said: “For X5, this partnership is an important step towards the development of an ancillary service offering for our customers.
“We are certain that this kind of delivery solution for online shopping will become increasingly popular, and therefore intend to support further active growth in this area of our business.”
In addition, X5 Retail has received approval from the Federal Antimonopoly Service (FAS) of Russia to purchase a 50% stake in TsTB.
Sovkombank management board deputy chairman Andrey Spivakov said: “For Sovcombank, the main purpose of participating in this project is to enhance distribution capabilities in the online shopping segment and to encourage instalment-based online purchases in partner stores using the bank’s Halva instalment card.
“We also believe in the financial success of this project, as we have all the prerequisites for further enhancement of the network, including being open to new partners, attractive locations in X5 Retail Group’s stores, the robust Halva brand and, finally, Sovcombank’s financial support.”
X5 Retail Group currently operates a range of retail formats, including proximity stores under the Pyaterochka brand, supermarkets under the Perekrestok brand, hypermarkets under the Karusel brand and Express convenience stores under various brands.
The company has 13,685 stores, including 12,822 Pyaterochka proximity stores, 712 Perekrestok supermarkets, 92 Karusel hypermarkets and 59 convenience stores.
It also operates 40 distribution centres and 3,293 company-owned trucks across the Russian Federation.