By Joe Hoppe
Russian food retailer X5 Retail Group reported an increase in sales for both the fourth quarter and the full year, driven by store expansions.
In the fourth quarter, total net sales reached 877.97 billion Russian rubles ($9.66 billion), up from RUB703.99 billion the previous year. Like-for-like sales also showed a positive trend, rising by 13%.
X5 Retail Group cited a significant shortage of operating personnel throughout the year, resulting in higher labor costs. However, this was partially mitigated by efforts to enhance operational efficiency, and the company anticipates further productivity growth in 2024.
Chief Executive Igor Shekhterman commented, "During this period, we actively expanded our proximity store, hard discounter, and online formats, initiated our presence in the Russian Far East, and bolstered X5's market position through strategic acquisitions in local retail markets."
For the full year, total net sales increased to RUB3.14 trillion from RUB2.6 trillion, with like-for-like sales showing a growth of 9.6%.
X5 Retail Group noted that its digital business experienced a significant boost, with year-on-year net sales rising by 76% to RUB123.59 billion, representing 3.9% of total net sales.
