Over 3300 pharmacies to open in X5 stores by 2020

Russian leading food retailer X5 singes partnership agreement with SIA International Ltd to launch pharmaceutical distribution in Perekrestok, Pyaterochka, and Karusel
Over 3300 pharmacies to open in X5 stores by 2020
22 September 14:03 2016 Print This Article

Russian food retailer X5 Retail Group to open some 3300 pharmacies in Pyaterochka, Perekrestok, and Karusel stores by the end of 2020, reports X5 press service.

X5 has entered into a 10-year partnership agreement with SIA International Ltd, a major pharmaceutical distributor, giving priority rights for opening pharmacies in X5 stores at market sublease rates. SIA International plans to invest up to RUB6 bln into the project, reads the press release.

The retail group believes that the partnership agreement contributes to create a health synergy between X5’s stores and the lessee boosting traffic and conversion, while proposing additional services to customers.

New pharmacies at X5 stores will be opened under the A-MEGA discounter brand and DA ZDOROV brand, which targets middle class customers. The pharmacies will offer 8,000 SKUs and range in size from 20 to 200 sq m. They will be located near checkouts in Perekrestok, Pyaterochka, and Karusel, and in Pyaterochka’s shopping area (shop-in-shop model).

By late 2016, SIA International intends to open some 170 pharmacies in the Moscow metropolitan area at premises leased from X5. Lately, the company will seek to expand further in other regions where Pyaterochka, Perekrestok, and Karusel operate.

“Cooperation with one of Russia’s pharmaceuticals distribution majors is in line with the Group’s partnership strategy to provide priority additional services, which helps to create a comprehensive product and service offering across X5 stores,” comments X5 CEO Igor Shekhterman.

Since July 2016, 57 pharmacies were already opened as part of a pilot project. Andrey Gusev, who previously developed the Rigla and A5 chains, will coordinate the project on behalf of SIA International.

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