MOSCOW: X5 Retail Group became the largest digital company in the Russian online food retail segment in 2020, according to Infoline.
X5’s online GMV1 for FY 2020 totalled RUB 21.9 billion (including VAT); this includes RUB 15.0 billion from the online hypermarket Vprok and RUB 6.9 billion from express delivery services from X5’s Pyaterochka and Perekrestok stores, as well as the express delivery aggregator Okolo launched in Q3 2020.
In FY 2020 X5 fulfilled 7.9 million e-grocery orders received via its proprietary online and mobile platforms, up from 1.4 million in FY 2019. This drove a 347% year-on-year increase in X5’s online GMV. According to Infoline, annual turnover for the entire Russian e-grocery market reached RUB 155 billion in 2020, increasing by 3.6 times and implying a 13% market share for X5.
For 2020, digital sales accounted for 1.0% of X5’s total sales and for 2.2% of sales in Moscow and the Moscow region. In Q4 2020 and January 2021, the share of X5’s digital business in sales in Moscow and the Moscow region reached 3.5% and 3.8%, respectively.
In January and February 2021, X5 is seeing continued strong consumer demand for e-grocery services. The combined number of daily orders for all delivery platforms on peak weekend periods in February has exceeded 67,000. X5’s digital services are currently available in 21 regions of Russia.
The current level of consumer demand supports the Company’s positive outlook for X5’s position in the Russia e-grocery market, given the its extensive network of 17,707 stores across 66 regions (as of 31 December 2020), which represents pre-existing infrastructure for expansion of the express delivery business.
Igor Shekhterman, CEO of X5 Retail Group, commented: “Today, X5 Retail Group holds the top position in the highly competitive and rapidly growing Russian e-grocery market. We are pleased with our results and the significant growth we have achieved over the past year. I am confident that we are moving in the right direction.
“This year we will start to transform our online hypermarket Vprok into an FMCG marketplace, which entails a significant expansion of its assortment and geographical coverage. Thanks to the successful development of our logistics project 5Post, the widened assortment of the Vprok marketplace will be available in most regions of Russia. In Q1 2021 we will also start connecting external partners to our express delivery aggregator Okolo, which has already seen fast growth during the pilot testing. Our express delivery operations from Pyaterochka and Perekrestok stores will also expand both in regions where we already offer it and also into new regions where X5 stores operate.
“X5 has already achieved a leading 13% market share in Russian e-grocery in 2020, according to Infoline, and we expect it to grow further.”
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