Пятёрочка
Native name
Пятёрочка
Pyaterochka
IndustryRetail
Founded1999 (1999) in St. Petersburg, Russia
Revenue1,198,000,000,000 Russian ruble (2018) Edit this on Wikidata
Number of employees
141,200 Edit this on Wikidata
Website5ka.ru

Pyaterochka (Russian: Пятёрочка, romanized: Pyatyorochka, lit.'Five') is a Russian chain of convenience stores managed by X5 Retail Group. The chain opened its 15,000th store in the city of Zelenograd, Russia, in May 2019.[1]

History

Interior of a Moscow proximity stores Pyaterochka in the new concept of 2019

The chain opened its first store in 1999 in Saint Petersburg. Pyaterochka expanded its market to Moscow in 2001 and started a franchise program a year later. Pyaterochka Holding N.V. completed an initial public offering on the London Stock Exchange in 2005. Pyaterochka and Perekrestok merged in 2006 to create X5 Retail Group; the group kept the Pyaterochka brand.[2]

In 2009, X5 Retail Group acquired Kopeyka, a retail chain with more than 660 stores and seven distribution centers.[3] All Kopeyka stores were rebranded to Pyaterochka.

Pyaterochka launched a store refurbishment program in 2013 to introduce a new range of products, and make the store layout more spacious. Most of the stores were refurbished with a glass-front design. The Pyaterochka concept of brand discount stores is the core format for X5 Retail Group, followed by the Perekrestok supermarket chain.[4]

Pyaterochka shop buil in mid 2010-s in Moscow residential district

Pyaterochka launched a store refurbishment new program in 2019. Most of the stores were refurbished with a glass-front design. The new Pyaterochka will offer almost twice as many fresh products in a selling area of around 150 sq m, which is about half of the sales floor. Vegetables, fruits and some of the perishable items are laid out in the dedicated fresh zone. On top of that, the rebranded Pyaterochka sells a wide assortment of foods to go and ready-to-eat meals and has a special area where customers can have coffee or fresh orange juice and charge their gadgets. An in-house bakery made it possible to expand the offering of bread and pastry.[5][6]

X5 launched an express delivery service from Pyaterochka stores at the end of 2019. As of April 2020, the service is available in Moscow, Lyubertsy, Skhodnya and Kazan.[7]

Key metrics

As of 31 December 2019, Pyaterochka operated 15,354 proximity stores, which generated revenue of 1.367 trillion rubles.[8]

Key operating metrics of Pyaterochka (as of 31 December)
Parameter / Year 2010*[9] 2011[10] 2012[11] 2013[12] 2014[13] 2015[14] 2016[15] 2017[16] 2018[17] 2019[8]
Number of stores Increase 2,052 Increase 2,525 Increase 3,220 Increase 3,882 Increase 4,789 Increase 6,265 Increase 8,363 Increase 11,225 Increase 13,522 Increase 15,354
Selling space, in thousands of square meters Increase 881 Increase 996 Increase 1,191 Increase 1,414 Increase 1,754 Increase 2,423 Increase 3,329 Increase 4,426 Increase 5,291 Increase 5,975
Net retail revenue, in billions of rubles Increase 194.8 Increase 282.8 Increase 317.7 Increase 348.4 Increase 435.8 Increase 585.4 Increase 775.6 Increase 1,001 Increase 1,198 Increase 1,367
Customer visits, in millions Increase 831 Increase 1,211 Increase 1,353 Increase 1,450 Increase 1,645 Increase 1,990 Increase 2,543 Increase 3,367 Increase 3,913 Increase 4,460

IT and innovations

In the spring of 2017, Pyaterochka began to automate its recruitment efforts. The automated system searches through curriculum vitae for a predetermined set of parameters and calls matching employment candidates to invite them to apply for open positions at the company. The automated system uses speech recognition technology with a female-voiced robot, Vera, and a male-voiced robot, Yermil, to transfer interested candidates to a human recruitment specialist.[18][19]

X5 Retail Group launched an online service in February 2018 that calculates the average rent that a Pyaterochka store pays anywhere that it has a presence. Based on this information, property owners whose property meets the chain's criteria can send offers to X5 Retail Group.[20]

In October 2018 X5 Retail Group has opened a 'lab store' based on Pyaterochka in Moscow, to test new technologies that will enhance customer experience. Engineers in the lab is conduct in-store trials of electronic shelf labelling, video analytics, smart shelves, digital information panels, and self-scanning and self-checkout systems. If a technology works out in the lab, it will move on for pilot testing in Pyaterochka, Perekrestok and Karusel stores, where X5 experts will also assess the viability and impact of these technologies on sales and costs. Based on the results of the pilot stage, a final decision is made on the implementation of the new technology in X5 stores.[21]

X5 Retail has begun installing self-checkout machines across its Pyaterochka proximity stores in April 2020. Tested successfully in August and September last year, these self-checkouts are now already installed at 369 stores. The plan for 2020 is to have a total of 12,000 units operating.[22][23]

Logistics

As of 31 December 2019, Pyaterochka operated 31 distribution centers.[8]

Cultural facts

Pyaterochka purchased the rights to the animated series Well, Just You Wait! (Russian: Ну, погоди!, tr. Nu, pogodi!) in February 2005. Director Aleksey Kotyonochkin, the son of animator Vyacheslav Kotyonochkin,[24] created two new episodes—number 19 in 2005 and number 20 in 2006—for Pyaterochka.

In January 2013, X5 Retail Group signed a license agreement with the Sochi 2014 Organizing Committee to be the official retail partner of the 2014 Winter Olympics in Sochi. Under the agreement, around 1,000 licensed Olympic souvenirs were available from Pyaterochka stores in 45 Russian regions.[25]

References

  1. "X5 Retail Group's chain reaches 15,000 stores". AK&M Information Agency. 17 May 2019. Retrieved April 19, 2020.
  2. "Company Overview of Pyaterochka Holding N.V." Bloomberg L.P. Retrieved August 25, 2018.
  3. "X5 Retail to acquire Kopeyka discounter chain". IndiaRetailing.com. 5 December 2010. Retrieved August 25, 2018.
  4. "Ruling the retail roost: Russia's top five supermarket chains ITE Food & Drink". www.food-exhibitions.com. Retrieved 2018-09-25.
  5. "Pyaterochka presents new concept". Financial Times. Retrieved April 18, 2020.
  6. "Pyaterochka". JDV Russia. Retrieved April 18, 2020.
  7. "X5 Retail Group reports 15.9% net retail sales growth in Q1 2020". London Stock Exchange plc. Retrieved April 18, 2020.
  8. 1 2 3 "Annual Report 2019" (PDF). X5 Retail Group. Retrieved April 18, 2020.
  9. "Annual Report 2010" (PDF). X5 Retail Group. Retrieved August 25, 2018.
  10. "Annual Report 2011 (Online version)". X5 Retail Group. Retrieved August 25, 2018.
  11. "Annual Report 2012" (PDF). X5 Retail Group. Retrieved August 25, 2018.
  12. "Annual Report 2013" (PDF). X5 Retail Group. Retrieved August 25, 2018.
  13. "Annual Report 2014" (PDF). X5 Retail Group. Retrieved August 25, 2018.
  14. "Annual Report 2015 (Online version)". X5 Retail Group. Retrieved August 25, 2018.
  15. "Annual Report 2016 (Online version)". X5 Retail Group. Retrieved August 25, 2018.
  16. "Annual Report 2017 (Online version)". X5 Retail Group. Retrieved August 25, 2018.
  17. "Annual Report 2018" (PDF). X5 Retail Group. Retrieved April 18, 2020.
  18. "Пятёрочка" автоматом (in Russian). Kommersant. 6 July 2017. Retrieved August 25, 2018.
  19. Как улучшить подбор персонала с помощью роботов (in Russian). Business News Media. 24 September 2017. Retrieved August 25, 2018.
  20. "Russian Federation: Pyaterochka to provide rent-calculation tool for 63 regions". SyndiGate Media Inc. Retrieved August 25, 2018.
  21. "X5 Opens Technology 'Lab Store' in Moscow". Russia Business Today. 19 October 2018. Retrieved April 18, 2020.
  22. "How COVID-19 is shaking Russia's online and offline retail". Digital Commerce 360. 13 April 2020. Retrieved April 18, 2020.
  23. "Russia's X5 Retail Group rolls out self-checkout (SCO) machines at its stores to help with social distancing". bne IntelliNews. 11 April 2020. Retrieved April 18, 2020.
  24. "New 'JUST YOU WAIT!' episodes now evailable in Perekrectok and Pyaterochka stores". X5 Retail Group. Retrieved August 25, 2018.
  25. "Х5 appointed official retail partner of the Sochi 2014 Winter Olympics". X5 Retail Group. Retrieved August 25, 2018.
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