CEO quits Russia's largest retailer
Andrei Gusev has resigned as X5 Retail Group CEO after just a year in the job. The lack of clarity over the reasons for the departure have increased concerns about the retailer, which is battling to turn around sales.
News that Andrei Gusev will stand down as X5 Retail Group chief executive caused shares in the Russian retailer to sink to a 52-week low on Saturday (14 July). The market responded negatively to fears that an unstable management team will be unable to drive growth as X5 struggles to improve organic sales trends. The sudden nature of the announcement and lack of clarity over the reasons for Gusev's departure augmented these concerns. Katy Askew reports.
Last week's shock announcement that X5 Retail Group CEO Andrey Gusev resigned caused the Russian retailer's share price to tumble. X5 also booked a mixed set of second-quarter results that showed the retailer was only able to slow - but not reverse - declining like-for-like and customer traffic trends. Analysts in Moscow are split over its performance in the market and the outlook for the country's largest retailer, but there is agreement the departure of Gusev will come as a blow.
Russian retailer X5 Retail Group has reported a fall in half-year sales, although there are signs its performance could be improving.
The CEO of Russian retailer X5 Retail Group Andrei Gusev has quit after just one year in the role.
Russian retailer X5 has booked a 32% drop in net profit for the first quarter as depressed consumer sentiment left sales flat.
X5 Retail Group saw its like-for-like sales fall almost 4% in the first three months of the year, the Russian retailer reported today (11 April).
- On the money: Unilever shifting into growth spots
- On the money: Danone denies strategy overhaul
- Why whole sector should take heed of meat scrutiny
- The just-food interview: Premier Foods CEO Darby
- On the money: Hershey confident in NPD pipeline
- Chobani bid for fresh UK appeal rejected
- Kellogg to close US snack plant
- Danone takes Mars yoghurts into more markets
- Danone UK ad banned over unauthorised claims
- Tyson sells Mexico, Brazil ops to JBS