X5 nominates a new CEO

Date : 08 September 2015

X5 Retail group has nominated a new CEO ’s Igor Shekhterman, while Stephan DuCharme will return to the Company’s Supervisory Board as its Chairman. Under Stephan Ducharme's management, X5 has successfully introduced a new Pyaterochka store concept and expanded this core store format in regions.

New CEO - Igor Shekhterman

X5 Retail Group today announced that Stephan DuCharme has decided to step down as CEO of X5 having successfully completed X5’s turnaround. He will return to the Company’s Supervisory Board as its Chairman, subject to his nomination as a Board member being approved by the Company’s shareholders at an extraordinary general meeting to take place in November this year. The Board has nominated Igor Shekhterman, currently member of the Board, to succeed Stephan as CEO of the Company.

Igor Shekhterman has been a member of the Board and Chairman of its Nomination and Remuneration Committee since 2013. In this capacity he has played an active role in the formation of the current X5 senior management team, based on a deep understanding of X5 and its business needs. Igor has been Managing Partner and CEO in RosExpert, which he co-founded in 1996 and has subsequently successfully developed into the Russian alliance partner of Korn Ferry.

Stephan DuCharme has over the last three years led the implementation of X5’s new operating model, the renewal of its three retail formats based on refreshed value propositions, the accelerated ramp-up of new trading space delivery and the formation of a strong senior management team. Stephan DuCharme and Igor Shekhterman have worked together closely over this period, in particular with regard to building the current leadership team. Stephan DuCharme previously served on the Board from 2008-2012.

Pyaterochka entering railway stations

X5 Retail Group has entered an agreement with the Railway Trading Company, under which the two sides aim to open nearly 300 retail outlets across Russia by 2019. The stores will be co-branded as RTC-Pyaterochka, and will operate on a ‘reverse franchising’ model. This will see Pyaterochka being involved in the store launch and offering operational support, including equipment, IT solutions, staff training, logistics, advertising, and maintenance. The RTC, meanwhile, will be responsible for day-to-day management of the stores. The stores will cover an average selling space of 350 sq m, and stock around 4,000 items. X5 aims to open five initial stores by late 2015.

Pyaterochka growing in regions through M&A

X5 Retail Group has acquired 104 stores owned by the Rosinka Group in the Orel, Voronezh, Lipetsk, Kursk and Tambov regions, half of which is located in the Orel region. The purchased Rosinka, Apelsin and Sberegaika stores will be rebranded under the Pyaterochka banner. In the first half of 2015, X5 Retail Group has acquired 100% stake in SPAR Retail, owned by A&NN Investments Ltd. SPAR Retail operating 26 stores in Moscow, Moscow Region and Vladimir. It also acquired 100 stores owned by the Soseddushka retail chain in Orenburg and the Orenburg region.

To see the new Pyaterochka store concept clickhere.

Miloš Ryba is a Senior Retail Analyst International at IGD. Miloš has been analysing global retailers and emerging markets for more than a decade. His deep expertise lies in Central & Eastern Europe and Asia. Miloš regularly presents at leading conferences in Europe, Middle East and Asia and features in European and North American media.