X5 Group will enter the market in the Far East

retailer X5 Group plans to allocate up to 10 billion rubles. for the development of stores and distribution centers in the Far East, about this informed company press office.

“X5 Group has entered into a cooperation agreement with the Corporation for the Development of the Far East and the Arctic (KRDV), which implies the start of the company’s operations in the Far Eastern Federal District,” the statement said.

Previously aired on TV RBC X5 Group President Ekaterina Lobacheva informedthat among the regions of the Far East, Primorsky, Khabarovsk and Trans-Baikal Territories, as well as the Amur Region, are considered potential for exit. She estimated that about a hundred convenience stores would open next year.

It is specified that the agreement was signed on the margins of the Eastern Economic Forum (WEF) in the presence of Deputy Prime Minister of the Russian Federation – Plenipotentiary Representative of the President of the Russian Federation in the Far Eastern Federal District Yuri Trutnev. The document was also signed by KRDV CEO Nikolay Zapryagaev and X5 Group President Ekaterina Lobacheva.

According to the document, the participants will determine the list of measures necessary for the trade network to enter the Far Eastern Federal District, including the need for infrastructure (electricity and land for distribution centers) and logistics (access roads for railways and vehicles). Based on the results of a comprehensive analysis, X5 Group will assess the possible development of a modern retail network in the region. KRDV will assist in the selection of land plots for the construction of logistics infrastructure, as well as in obtaining the status of a resident of a priority development area (TOR), which will make it possible to receive preferential administrative and tax conditions.

Trutnev noted that the development of this project will reduce the cost of products in stores in the Far East, and will also enable local farmers to create new sales channels for products, which will lead to “an increase in production, the development of new sown areas, because when people will understand that their products are in demand, they can produce more agricultural products.

Now X5 Group stores are represented in seven of the eight federal districts, that is, in all except the Far East. In total, the company has more than 19,000 stores.

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