X5 Corporate Center · RUS:X5
X5 Corporate Center — X5 Retail Group — Investor Day (October 2013)
19 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 Olga Naumova General Director of Pyaterochka 11 October 2013 1
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: Pyaterochka's Value Proposition
Pyaterochka’s Value Proposition Unique value proposition Comments Conveniently located stores for economic shopping Low prices for the Rational choice for economic goods I need customers Best price/quality balance in the Best in fresh The best market segment category shopping choice Right as
Slide 4: Positioning and Customers
Positioning and Customers Key competitors TargetTarget audience audience We compete with the stores located within 500 - 900 Target customers meter distance from our stores: People, living nearby (500 m) Other discounter chains Sensitive to prices, rational shopping attitude Upscale formats
Slide 5: New Brand Communication
New Brand Communication The new communication is not just a renewed logo. It is a new philosophy within a new company . Pyaterochka stores don’t only offer convenience and low prices – We are changing! We want to move closer to customers, we want to surprise with cleanness, freshness and new assortm
Slide 6: Customer Feedback
Customer Feedback 1 Improve assortment, particularly fresh 2 Improve quality of produce Simplify navigation, and optimize price-tags 3 location 4 Increase checkouts service speed 5 Maintain very competitive prices We have analyzed and incorporated our customers’ feedback In to our new strategy Sourc
Slide 7: Key Initiatives Overview
Key Initiatives Overview Initiatives Key steps Pilot programs for light and full refurbishment completed Refurbishment New brand book for store design, in-store navigation and layout Refurbishment program roll-out Work with suppliers, more accurate purchases at the right prices Assortment +
Slide 8: Refurbishment Program
Refurbishment Program Program overview Expected effect Overview. In April-June we launched two pilot reconstruction projects: full and light Increase in 23 stores were refurbished, including 10 in Central region, 10 in North-West and 3 in LFL sales Ural region Capital expenditures. Average cost
Slide 9: New Store Design
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Slide 10: New Store Lay-out
New Store Lay-out Store lay-out scheme Comments More “fresh” in store Store director is also Fresh director and always on the trading floor Less back office space and more selling space New equipment Well-designed and presentable shop-in-shop stores in the sublease area vs old-fashioned an
Slide 11: Assortment Composition Principles
Assortment Composition Principles Introduction of category management principles Reorganization of commercial department to Category Management model Introduction of over 300 new SKUs, in October we begin weekly assortment updates of up to 50 new SKU’s Strong federal assortment complemented by l
Slide 12: Pricing Strategies
Pricing Strategies 1 Cluster 2 Local 3 Consumer pricing pricing baskets For stores with different level of First price products Price clusters = Assortment competition KVI clusters Lower prices and higher frequency Private Label Based on competitive of competitors’ prices monitoring
Slide 13: In Store Processes
In Store Processes Store Outperformers vs. bad performers benchmarking Develop action plan on the base of the analysis Introduction of auto-ordering decreased the time store directors spend for ordering per day Auto-ordering Store directors may spend more time on the floor: controlling busin
Slide 14: Cluster –Main Business Unit
Cluster –Main Business Unit New organizational structure Key organizational principles Organizational structure and decision-making process is based consumer demands New organizational principles Division – up to 10 clusters Cluster is the base business unit responsible for P&L and 1,000 stores
Slide 15: New Operating Model
New Operating Model New “Pyaterochka” operating model – 4 key functions Format’s concept Format Strategy and development targets General Expansion to new regions Director Store lay-out concept Culture of consistent improvements Stores quality – operations Organic development and execut
Slide 16: Pyaterochka Logistics - Moscow Region
Pyaterochka Logistics - Moscow Region Initiatives Overview Current & Target Results 1 Supply chain (Logistics/Category management) Increase in centralization level Increase in centralization level & supply frequency PLU (multi box) Supply chain modeling Improvement of availability Assortment
Slide 17: Developing Personnel
Developing Personnel Recruitment Recruitment Training Training programs programs Expected results Initial skill assessment Assessment centers and career Team Team building – Store building – Store director Cooperation with universities, planning – Supervisor director – Supervisor – Regional– p
Slide 18: Transformation Schedule
Transformation Schedule 2013 2014 2015 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Employees relocated, new processes introduced Restructuring New organization Implementation of New business-model, New operating model business-plan and business (logistics, clusters, Beginning of New transformation plan -model
Slide 19: Thank you for your attention!
Thank you for your attention! 19