X5 completes rebranding of Paterson

X5 Retail Group has completed the rebranding of the Paterson supermarket chain after having acquired the chain last year. In just four months, 53 of the 82 Paterson stores acquired were rebranded as Perekrestok supermarkets and a further 22 - as Pyaterochka discounters. This rebranding has been in line with the original plans announced by X5 after the acquisition and reported in the November 2009 edition of Retail Update Russia.

The Pyaterochka stores in St. Petersburg recorded an increase in customer traffic of 43% (comparing the weeks of 11-17 May 2009 and 10-16 May 2010). Those in Kazan recorded an increase of 31%. The increase in customer traffic at Perekrestok stores in St. Petersburg was between 3% and 18%.

X5 operates 1,399 stores in Russia and Ukraine, including 1,063 Pyaterochka discounters, 276 Perekrestok supermarkets and 60 Karusel hypermarkets. A further 640 stores are operated on a franchise basis. In 2009 X5 generated a net revenue of $8.7bn and net profit of $165m.

The acquisition of Paterson has made X5 the number-one player in the supermarket segment of the Russian retail market. Through the acquisition, the company was able to increase its storecount and also presence in strategically important locations, including Moscow and St. Petersburg. As a result of the transaction, the number of supermarkets operated by X5 has increased by 25%. In addition, the takeover enabled X5 to enter new cities with its Perekrestok supermarket brand. These new cities include Arhangelsk, Tver, Penza, Ufa, Chelabinsk and Sochi.

Naira Ter-Margaryan, Consultant, PMR