Russian food retailer X5 Retail Group has signed a letter of intent (LoI) with parcel lockers and pick-up points operator PickPoint to establish a joint venture (JV) to develop a locker network.

The 50:50 JV will be operated as a legal entity and is expected to operate 1,500 parcel lockers by the end of 2019.

X5 Retail Group strategic business development director Igor Pletnev said: “By partnering with PickPoint, one of Russia’s leading express delivery companies, we seek to maximise locker usage and increase parcel delivery from major online retailers.

“We also expect to gain invaluable expertise and know-how from the company that pioneered and has been successfully expanding the automated online parcel delivery business in Russia.

“With its extensive retail network across the country, X5 is well-positioned to expand the range of convenient services we provide to our consumers.”

“With its extensive retail network across the country, X5 is well-positioned to expand the range of convenient services we provide to our consumers.”

As part of the deal, X5 will leverage the locker network to provide small online retailers and regional producers access to its extensive logistics infrastructure, serve its customers better, and increase traffic.

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Through its sales network, PickPoint currently operates most of the 1,700 lockers and pick-up points across the Russian food retailer’s network.

The pick-up points operator opened its first pick-up point in early June last year and delivered 300,000 parcels to customers since then.

X5 Retail Group currently operates various retail formats including Pyaterochka branded proximity stores, Perekrestok supermarkets, Karusel hypermarkets and Express convenience stores.