X5 has assigned a new director for the Pyaterochka banner and two supervisory members with the expertise to return the discount format to like-for-like growth. This comes at a time when Pyaterochka faces a decline in like-for-like sales performance - from 9.1% growth in 2016 to 4.6% in 2017, and 0.8% decline in the first quarter of 2018.
Pyaterochka has a new director
Igor Shekhterman, X5 Retail Group CEO, has appointed Sergei Goncharov as the General Director of Pyaterochka, taking over from Olga Naumova who left in April 2018. Mr Goncharov was the Head of strategy and M&A position in X5 since the early part of 2018, and previously was the director of pharmacy and drugstore formats at Magnit.
Sergei Goncharov will implement X5’s strategic vision
X5 has two key strategic priorities to be implemented in the Pyaterochka banner - adapting the banner’s value proposition to fit regional and changing needs and optimising in-store operations. Mr Shekhterman’s reasoning behind the appointment of Mr Goncharov’s is due to the latter’s familiarity with X5’s strategic priority from his previous role. Mr Goncharov has a “track record in both strategy and brand management, as well as operational management and retail business development.”
Appointing discount expertise
X5 appointed Karl-Heinz Holland, who has over 20 years of experience at Lidl Group, including being the CEO for six years and driving the banner’s expansion across Europe. Stephan DuCharme, Chairman of X5 Retail Group supports for the appointment because of Mr Holland’s “professional experience will help X5 to continue improving its industry-leading formats in food retail, particularly on the proximity front. (Pyaterochka)”.
Technology appointee to optimise stores
Another appointee to the supervisory board is Nadia Shouraboura, who served as Technology Vice President for Amazon’s global supply chain and fulfilment platforms between 2004 and 2012. Ms Shouraboura’s background in technology and supply chain will help bring technology in-store. This works with X5’s strategic priority to use technology and Big Data to boost traffic and basket size, following slower like-for-like sales growth in 2017, and decline in early in 2018.
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Amin Alkhatib, Retail Analyst CEE, IGD International: based in London, UK, Amin is responsible for shaping IGD's research in Central and Eastern Europe; as well as contributing to IGD's broader European research programme. Follow me on Twitter @Amin_IGD for further insight on the region’s retail landscape.