Pyaterochka strengthens managment structure

X5 Retail Group, leading Russian food retailer, announces changes to the organisational structure of its Pyaterochka chain and the transition to a macro-regional management model
Pyaterochka strengthens managment structure
30 May 14:52 2018 Print This Article

As part of the change, five macro-regions will be established and headed by directors who will report directly to Pyaterochka’s General Director. Each macro-region will consolidate two to four former geographical divisions and from 2,000 to 3,000 Pyaterochka stores.

The structural change has been driven by the chain’s rapid growth, with revenue and store numbers having more than doubled since late 2014. To streamline management processes and maintain current growth rates, Pyaterochka’s headquarters need to delegate some functions. The new macro-regional executives will take on full operational management, allowing headquarters to focus on strategic priorities, setting goals and monitoring progress. This will accelerate decision-making and streamline local promotions and assortment management to better adapt stores to regional markets.

Two macro-regions have been established to date: Moscow ( comprise from 500 to 1,000 stores) and Volga (Includes the Republics of Komi, Udmurtia, Tatarstan, Mari El, Mordovia, Chuvashia, as well as the Kirov, Nizhny Novgorod, Penza, Ulyanovsk, Samara and Orenburg).  Regions another three will be created over the summer, including Urals-Siberia ([includes the Republics of Khakassia, Bashkortostan, the Khanty-Mansi Autonomous Area, the Yamal-Nenets Autonomous Area, Altai and Perm Territories, as well as the Kemerovo, Novosibirsk, Tomsk, Omsk and Tyumen).

The structural transformation is expected to be complete by 1 October 2018.

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