X5 Corporate Center · RUS:X5
X5 Corporate Center — X5 Retail Group — Investor Day (October 2013)
14 slides from X5 Corporate Center's investor day presentation, Oct 11, 2013
Slide 1: X5 Retail Group Capital Markets Day
X5 Retail Group Capital Markets Day Presentation for Investors Svetlana Volikova 11th October, 2013 General Director of Karusel 11 October 2013
Slide 2: Disclaimer
Disclaimer 2 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 o
Slide 3: Hypermarkets' Growth Potential
Hypermarkets’ Growth Potential Modern Trade in Russia Hypermarkets are a ~$30B business CAGR Rapid footprint expansion $33B $74B 18% MM (from 240 HMs in 2007 to 710 stores SM 9% today) Soft discoun- 21% Moderate HM penetration in ters Russia vs. European average (~7 HMs today vs. 18 HMs per 1M u
Slide 4: Expansion Opportunities: Prudent Case
Expansion Opportunities: Prudent Case Short- to Mid- Term expansion opportunities: 150-200 new hypermarkets in Russia ~320 cities: 170 cities* with 100K+ inhabitants and ~150 with 50-100K inhabitants today Out of them 90-120 cities with potential for expansion In this cities 150-200 store oppo
Slide 5: Focus on Shopping Experience
Focus on Shopping Experience Karusel should become more competitive on quality and price and focus on shopping experience Best Worst Quality of Price Assortment Shopping Quality of Store Additional products convenience service environment services Shopping experience Note: Among customers who shoppe
Slide 6: Successful Start
Successful Start Our Goals Progress increased media investment Raise brand equity and awareness impactful (customer insight based ) advertising store standard improvement effective availability control better promo value and unique marketing Improve customer experience campaigns review o
Slide 7: Process Standardization & Training
Process Standardization & Training Customer-facing Store operations Management processes processes support processes Sales Ordering processes Human Resources (mainly over-the-counter) Roles and responsibilities Inventory management Personnel recruiting Check-out Shelf replenishment
Slide 8: Convenient shopping, fair prices
Overall Customer Value Proposition Target Concept ‘Convenient shopping, fair prices’ Why I shop at Karusel: I can find everything I need for my weekly shopping, and more… I don’t overpay – good value for money, no need to drive further I am shopping, not waiting in lines I have a Karusel card which
Slide 9: Target Concept Positioning
Target Concept Positioning Source: Planet Retail; Analysts reports 9
Slide 10: Target Concept: Details
Target Concept: Details Target Concept Store size 3 000 – 4 500 m2 (exceptions possible for 2.5, 7K m2 stores) Concept Brand book, focus on Ultra-Fresh / Fresh and design with emphasis on Own Production + superior shopping experience 15-25K PLUs depending on store size Assortment + 8K additional sea
Slide 11: First Pilot Already Launched
First Pilot Already Launched Voykovskaya reconstruction : 20% Like-for-Like sales target growth after reconstruction Compliance with the new brand book Revised assortment and merchandising guidelines Support with communication campaign Improved store environment 11
Slide 12: Key Reconstruction Parameters
Key Reconstruction Parameters Our plan is to reconstruct approximately 10 stores annually. Reconstruction works will be performed mainly without store closures, during the low season and within 60 days. Reconstruction works include: Full replacement of engineering systems, Full replacement of li
Slide 13: Key Action Items Timeline
Key Action Items Timeline 2013 2014 2015 FY Q1 Q2 Q3 Q4 Q1 Q2 Q3 Fix the basics Continuous improvement across the existing network Pricing (price-follower to regional market price-leader) Assortment (focus on Ultra-Fresh and Fresh, etc.) Constant operations improvement (i.e. customer-facing, s
Slide 14: Thank you for your attention!
Thank you for your attention! 14