X5 becomes Russia’s largest digital company in food retail after 347% GMV jump

X5 Retail Group became Russia’s largest digital company in the online food retail segment in 2020 after its Gross Merchandise Value (GMV) jumped 347% y-o-y, according to Infoline research.

X5’s GMV for FY 2020 totalled RUB 21.9 billion (including VAT). 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.

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.

In January and February 2021, X5 is seeing continued strong consumer demand for e-grocery services. The current level of consumer demand supports the Company’s positive outlook for X5’s position in the Russian e-grocery market, given 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.’’