X5 Corporate Center · RUS:X5
X5 Corporate Center — X5 Retail Group — Investor Day (October 2014)
22 slides from X5 Corporate Center's investor day presentation, Oct 29, 2014
Slide 1: Karusel – X5 Retail Group Capital Markets Day 2014
Karusel X5 Retail Group Capital Markets Day 2014 Vardan Dashtoyan, Karusel General Director 29 October 2014 Moscow, Russian Federation an company
Slide 2: Introduction
INTRODUCTION 2
Slide 3: Karusel at a Glance
KARUSEL AT A GLANCE YOUR DESTINATION STORE FOR ALL YOUR FOOD AND HOUSEHOLD CONSUMABLE NEEDS TOTAL NUMBER OF STORES, 30.09.2014 81 TOTAL SELLING SPACE, (TH. SQ. M.), 30.09.2014 357 TOTAL NET SALES FOR 9M 2014, RUB BLN 50 SHARE IN X5 TOTAL SALES 11% ASSORTMENT SIZE, #SKU’S 17,000 – 25,000 # OF EMPLOYE
Slide 4: Karusel Operating Statistics
KARUSEL OPERATING STATISTICS Net Sales Growth, % y-o-y Net Selling Space Growth, % y-o-y 8.7% 8.6% 7.1% 7.4% 2.1% (0.5% ) (2.3% ) (3.7% ) Q4 '13 Q1 '14 Q2 '14 Q3 '14 Q4 '13 Q1 '14 Q2 '14 Q3 '14 Sales Densities, th.RUB/sq.m.(1) Total LFL Sales Growth, % y-o-y 188 183 179 174 6.3% 5.0% 4.5% 3.4% Q4 '1
Slide 5: 2013 Initiatives Score Card
2013 INITIATIVES SCORE CARD Initiative Status Comments Reduced # of employees/store by ~10% Operations & Service over past 12 months New IKRA loyalty program = ~30% of Branding total sales “Quality Service” & “Alfa Team” Personnel Development personnel programs Currently 64 projects Develop Land-ban
Slide 6: Assortment & Category Management
ASSORTMENT & CATEGORY MANAGEMENT 6
Slide 7: Assortment Roll & Allocation
ASSORTMENT ROLL & ALLOCATION Complementary Grocery Basics Basis for Differentiation Opportunistic Core Traffic Power Hero Limited number of Categories that Staples/ basic goods Categories that categories that we supplement the overall that are essential to be Must stock items differentiate the Karus
Slide 8: Category Management in Practice
CATEGORY MANAGEMENT IN PRACTICE Category management increase turnover (RTO) for category RTO +11,5% RTO 175 M RUB RTO 195 M RUB Delisted 350 SKU Listed 390 SKU 2430 SKU 2430 SKU Before After Example: Frozen food 8
Slide 9: Brand Development
BRAND DEVELOPMENT 9
Slide 10: Loyalty Program
LOYALTY PROGRAM What is it… …What it will be Unique concept DATA improvements 1 400 000 sold cards Personalized offers 30% of turnover Social responsibility 70% of cards are active 10
Slide 11: Marketing Campaigns
MARKETING CAMPAIGNS 2014 Q1 Q2 Q3 Traffic +2% +3% +1% +3% +1% Avg. ticket +0,5% +1% +1% +2% +1% 11
Slide 12: Expansion & Refurbishments
EXPANSION & REFURBISHMENTS 12
Slide 13: Hypermarket Lifecycle
HYPERMARKET LIFECYCLE A large portion of Karusel hypermarkets are in the stagnation phase traffic Opening Developing Stabilization Stagnation REFURBISHMENT 7 3 20 51 1.5 years 2.5 years 5 years Refurbishments represent tremendous sales growth opportunities … Kashirskiy HM(+23% LFL sales) Voykovskaya
Slide 14: Pilot Program Results
PILOT PROGRAM RESULTS 9M 2014 Sales Traffic Vojkovskaja +14% +8% PILOT PROJECTS ARE Novomoskovsk +74% +47% DELIVERING RESULTS Smolensk +84% +51% Key Pilot Program Takeaways Assortment: Increase # of SKU’s, own production and local content Merchandising: Update meat, fish and own production zones
Slide 15: Refurbishments – Before & After
REFURBISHMENTS – BEFORE & AFTER Before After 15
Slide 16: Refurbishments – Before & After
REFURBISHMENTS – BEFORE & AFTER Before After 16
Slide 17: Hypermarket Pipeline
HYPERMARKET PIPELINE New Stores (ex real estate) 2013 2014E 64 Projects # of new stores (gross) 7 2 Avg Cost, RUB mln (incl. VAT) 173 174 Pay-back period, years ~2.3 ~3.0 31 Refurbishments 2013 2014E # of refurbished stores 4 7 Avg opening time (construction), months 3 3 Avg Cost, ‘000 RUB/SQ. M. (i
Slide 18: Strategic Focus
STRATEGIC FOCUS Improve sales densities and selling space expansion The Right Hypermarket Value Proposition Niche – complete new Karusel Value brand-book Proposition Finalize category management roll out and assortment review Improve analysis and utilization of data from loyalty program Im
Slide 19: Appendix: New Value Proposition
APPENDIX: NEW VALUE PROPOSITION 19
Slide 20: Value Proposition
VALUE PROPOSITION Location & Store Assortment & Promo & Price Service Layout Merchandising Marketing Basics Clean store Value for money All key products Regular promo Short lines Parking Honest pricing Full shelves Seasonal offers Compact Hypermarket: Convenient, Enjoyable Shopping
Slide 21: Thank you for your attention!
Thank you for your attention! an company
Slide 22: Disclaimer
DISCLAIMER This presentation does not constitute or form part of and should not be construed as an advertisement of securities, an offer or invitation to sell or issue or the solicitation of an offer to buy or acquire or subscribe for securities of X5 Retail Group N.V. or any of its subsidiaries or