X5 Retail Group has announced the opening of a new distribution centre in Yaroslavl in the Central Federal District of Russia.
The 34,000 square-metre Yaroslavl logistics facility will serve over 500 Pyaterochka stores in Yaroslavl, Arkhangelsk, Vologda, Ivanovo, and Kostroma.
There are around 150 Pyaterochka outlets in the Yaroslavl Region, with more than 80 of them in Yaroslavl.
The new logistics facility will help in enhancing the share of local goods, which already accounts for more than 20% of Pyaterochka's product mix in the Yaroslavl Region.
A Focal Point
The facility will be the focal point for local suppliers to increase their sales, transport products to other regions, and cut down delivery costs significantly.
At its full capacity, the distribution centre will be able to handle and store products from more than 500 suppliers.
Equipped with six separate temperature zones, the distribution centre is designed to store nearly all categories of goods.
It will help ensure that goods are always fresh and available, as Pyaterochka continues to expand in other regions.
Round-the-clock operations in this distribution centre will be managed by around 400 local residents.
In 2017, X5 Retail Group added 11 producers from the region to its supplier list.
Pyaterochka has already partnered with many local suppliers including Yaroslavsky Broiler for poultry; meat and bakery goods producer Atrus; and dairy supplier Danilovskiye Syry Trade House.
Overall, Pyaterochka's facilities and stores have provided jobs to more than 2,000 people in the Yaroslavl Region.
Expansion in Central Russia
The company has also revealed plans to develop logistics and infrastructure in the Central Federal District to ensure the smooth operation of its stores.
In the past three years, X5 Retail Group has opened 23 distribution centres, which add up a total area of 598,000 square metres.
By the end of 2018, eight more stores are expected to open in the Yaroslavl region, of which at least one will be located in the regional centre.
© 2018 European Supermarket Magazine – your source for the latest retail news. Article by Dayeeta Das. Click subscribe to sign up to ESM: The European Supermarket Magazine.
