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: Perekrestok x5 Capital Markets Day
Perekrestok x5 Capital Markets Day Vladimir Sorokin, Perekrestok General Director 29 October 2014 Moscow, Russian Federation an company
Slide 2: Introduction
INTRODUCTION Sonep=expecro S Nep=KpecroK
Slide 3: Perekrestok at a Glance
PEREKRESTOK AT A GLANCE RUSSIA’S FAVORITE, HIGH QUALITY FRESH SUPERMARKET TOTAL NUMBER OF STORES, 30.09.2014 389 TOTAL SELLING SPACE (TH SQ. M.), 30.09.2014 400 TOTAL NET SALES FOR 9M 2014, RUB BLN 83 SHARE IN X5 TOTAL NET SALES 18% AVERAGE ASSORTMENT SIZE, # OF SKU’S 13,500 # OF EMPLOYEES, 30.09.20
Slide 4: Operating Statistics
Timeline OPERATING STATISTICS PEREKRESTOK Net Sales Growth, % y-o-y Net Selling Space Growth, % y-o-y 8.1% 5.5% 4.4% 3.8% 1.6% 1.7% 2.2% 1.1% 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 289 284 285 285 4.3% 0.0% 0.4% 0.6% Q
Slide 5: 2013 Initiatives Score Card
Timeline 2013 INITIATIVES SCORE CARD INITIATIVE STATUS COMMENTS ORGANIZATIONAL STRUCTURE Team/Model in Place FINALIZE POSITIONING Brand book, assortment, service, price In ASSORTMENT STRATEGY New assortment on shelves in Moscow progress PRICE STRATEGY Cultivating attractive price Image STORE CONCEPT
Slide 6: Assortment
ASSORTMENT Sonep=expecro S Nep=KpecroK
Slide 7: Category Roles
CATEGORY ROLES The key driver for: Assortment/ Pricing/ Promo Strategy OPPORTUNISTIC KEY TRAFFIC POWER/ HEROES (selective focus) (basis) (competitiveness) (victory) ASSORTMENT Impulse Basket filling Footfall Differentiation ASSORTMENT CHANGE 2014 5% increase in assortment to 13,500 SKU’s and 25% ass
Slide 8: Marketing and Promo Strategy
MARKETING AND PROMO STRATEGY 8
Slide 9: New Advertising Campaign
NEW ADVERTISING CAMPAIGN “Fresh food is good for you. It energizes you. It’s positive. Shopping at Perekrestok is a positive event — an upbeat experience.” Tone of campaign is welcoming, fun and upbeat. Presents a dreamlike world that you don’t see everyday — something new and exciting and a l
Slide 10: Brand Communication - Billboards
BRAND COMMUNICATION - BILLBOARDS 2013 2014 10
Slide 11: Brand Communication – Weekly Catalogues
BRAND COMMUNICATION – WEEKLY CATALOGUES 2013 2014 11
Slide 12: Private Label Strategy
PRIVATE LABEL STRATEGY Value for money Own brand supports innovation, high quality, right price Effective category management and profitability growth Strengthen customer loyalty Develop and support local producers Mainstream Segment Economy Segment PEREKRESTOK PROSTO! 12
Slide 13: Private Label Development
PRIVATE LABEL DEVELOPMENT “Perekrestok” and Develop Private Label (PL) “PROSTO!” brand strategy 100% own private labels portfolio. launch Launch premium PL brands Q1 2014 Q2 2014 Q3-Q4 2014 Q3 2015 Q1 2016 Brand names and Finalize delisting of private design development label (common assortment “Per
Slide 14: New Store Concept & Expansion
NEW STORE CONCEPT & EXPANSION 14
Slide 15: New Store Concept
NEW STORE CONCEPT - Well visible clear price signs - Clear navigation through the - Mass-In-limits (MIL) whole customer journey (zoning, - Smart price offers (buy 3 light, walkway, focus points, info pay2) system) - The law of scarcity (only - Clear view on the fresh today) departments (Fruits & Veg
Slide 16: New Perekrestok Zoning & Layout
NEW PEREKRESTOK ZONING & LAYOUT Emotional & Rational Combination Layout focused on rational and emotional New approach to zoning and categories zoning navigation New communication and accents in promotion New view of assortment and counters New equipment and visual merchandising 16
Slide 17: New Store Concept vs Old Store
NEW STORE CONCEPT VS OLD STORE before Before before After 17
Slide 18: New Concept Implementation
NEW CONCEPT IMPLEMENTATION Flagship Store - Moscow New Stores 2013 2014E # of store openings (gross) 26 34 Avg Cost, RUB mln (incl. VAT, ex real estate) 63.7 63.8 Pay-back period, years 3.7 3.6 Refurbishments 2013 2014E # of refurbished stores 24 27 # of refurbished stores - new concept n/a 5 Avg Co
Slide 19: Expansion Plans
EXPANSION PLANS Priority Regions Moscow, St. Petersburg & "Millioniki" cities Cities with current Perekrestok supermarkets and adjacent to cities with Perekrestoks (economies of scale) Locations Stand alone stores, malls, ground floor of residential buildings Key challenges Petrozavodsk Russia's
Slide 20: Strategic Focus
STRATEGIC FOCUS Accelerate growth in sales and selling space Increase # of stores in current regions – critical mass/economies of scale Accelerate Growth “Speed up” decision making process – simplify investment decision making process to… “Speed up” & “industrialize” store openings, up to 65
Slide 21: Thank you!
Thank you! cfoNep=kpectok an )XS5RETAILGROUP company CYTIEPMAPKET
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