Karusel to appear in smaller towns

The X5 Retail Group has decided to open its Karusel hypermarkets in towns with up to 100,000 residents, in which it intends to open outlets in a smaller format – 4,500 m2, as opposed to 10,000 m2 at its traditional stores. In some regions the area of the stores is expected to reach 7,000 m2. Overall, the company is planning to launch 150-200 hypermarkets in 90-120 cities and towns, excluding St. Petersburg. In cities with populations of one million, the retailer hopes to open up to 80 hypermarkets, whereas in those with 500,000-1,000,000 residents, there will be up to 10 outlets, in those with 100,000-500,000 residents, up to 40 hypermarkets and in towns of 50,000-100,000, 70 Karusel stores at most.

As PMR reported on a previous occasion, X5 announced plans to reduce the number of its Karusel hypermarkets, and the number of SKUs offered, at the beginning of 2012. At that time, the decision was made because of the low sales figure per 1 m2 of $6,400 (€4,730) at Karusel stores. In January 2012 there were 32 Karusels taking up more than 4,500 m2.

Today, the X5 Retail Group operates over 4,000 stores in different formats, including 78 Karusel hypermarkets. Between January and September 2013 the company’s hypermarket division brought it revenue of RUB 45.9bn (€1.05bn), a 3.6% year-on-year increase.

In addition, the retailer plans to revamp all three formats of its hypermarkets, discounter stores and supermarkets. The refurbishing of the Pyaterochka discounters alone, planned by the company, is thought to be worth $160-440m (€118-325m). The process is to be disclosed in 2014.