Having finalized the technical part of the Karusel integration, X5 Retail Group in Russia is going to rebrand Perekrestok hypermarkets to Karusel. This programme started in the fourth quarter 2008 and will be finalised in the first quarter 2009. At the same time X5 is fine-tuning and adjusting its hypermarket concept in order to enhance the stores’ appeal to consumers in difficult economic times. The retailer said it is focusing on the format’s competitive advantages, including pricing strategy, loyalty programmes, assortment rationalisation (especially in non-food fast-moving goods), and advertising campaigns to drive the “everything under one roof” and “low price” message home to consumers.
In its Perekrestok stores, X5 will continue to execute its pricing policy, which historically has enjoyed a very strong customer response. It will also rationalise assortment, increasing private label stock and further enhancing its focus on fresh food, one of its strongest competitive advantages. At the same time, X5 is going to optimise its regional supermarket exposure and focus on the regions with stable demographics for supermarkets. Stores that could benefit from conversion into soft discounters will be remodelled and rebranded as Pyaterochka. With respect to expansion, new supermarkets will be opened on a very selective basis, only in Moscow, St Petersburg and several other large cities.
