Russian retailer X5 Retail Group has announced that it has made changes to the management structure of its Pyaterochka chain.
The group also announced that it will transition to a macro-regional management model, which will see five macro-regions established and headed by directors who will report directly to Pyaterochka's director general.
Each macro-region will consolidate between two and four former geographical divisions and 2,000-3,000 Pyaterochka stores.
Ensuring Rapid Growth
The retailer said that the change has been driven by the chain’s rapid growth, as its revenue and store numbers have more than doubled in the last three years.
Macro-regional executives will take on full operational management, allowing headquarters to focus on strategic priorities, setting goals and monitoring progress. X5 said that this will accelerate decision-making and streamline local promotions and assortment management to better adapt stores to regional markets.
Strategic Goals
X5's CEO and acting director general of Pyaterochka, Igor Shekhterman, said, “We are confident that the new organisational structure will help us deliver on our strategic goals, maintain a strong leadership of the food retail market, and fuel further sustainable and effective growth.
“The growth of our team is another important priority, and the updated organisational structure provides ample opportunities for members of the company's talent pool, who were our key candidates in selecting macro-regional senior managers. All of the newly appointed managers have been sourced from our internal talent pipeline, testifying to the strength and great potential of our team,” Shekhterman added.
Two macro-regions have been established to date, in Moscow and Volga, and another three are due to be created over the summer. The structural transformation is expected to be completed by October of this year.
X5 recently announced that it has formed a strategic partnership with the Republic of Tatarstan, which will focus on the innovation of new technologies.
© 2018 European Supermarket Magazine – your source for the latest retail news. Article by Aidan O'Sullivan. Click subscribe to sign up to ESM: European Supermarket Magazine.
