RUSSIA: Fuchs latest senior exec to leave X5 Retail Group
- Hypermarket chief Fuchs leaves
- Follows resignation of CEO Gusev
- X5 battling falling LFL sales
Jan Fuchs has become the latest senior executive to leave Russian retailer X5 Retail Group.
Fuchs, the head of X5's hypermarket operations, had "decided to leave the company", X5 said in a statement yesterday evening (28 August).
The former Rewe executive only joined X5 in November and his departure will add to the uncertainty surrounding the company.
Last month, X5 said CEO Andrei Gusev had resigned from the business after just a year in the role. The company has yet to appoint a permanent replacement, with director Stephan DuCharme in charge on a temporary basis.
X5's sales and margins are growing at a slower rate to its rivals and the company is losing market share. Last week, X5 said its like-for-like sales had dropped by 2.5% in the second quarter, its third consecutive quarter of like-for-like decline.
Analysts have suggested X5's recent performance could be partly explained by changes to its management team. As well as Fuchs joining in November, former Lidl executive Frank-Michael Mros was appointed in May to run X5's discount business. Last year, ex-Tesco executive Paul Martins was named commercial director.
Alongside Fuchs' exit, X5 said Valeriy Tarakanov, head of its convenience stores, would now lead its supermarket chain. Igor Sotnikov, general director of the supermarket format, has been appointed director of logistics, replacing Alexander Ermolenko, who has decided to leave the retailer.
For an analysis of X5's recent performance and why the next year could be a telling one for the business, read our latest BRICs and beyond column.
X5 RETAIL GROUP ANNOUNCES MANAGEMENT TEAM RESHUFFLE
Amsterdam, 28 August 2012 - X5 Retail Group N.V. ("X5" or the "Company"), Russia's largest retailer in terms of revenue (LSE ticker: "FIVE"), announced today that the Company's Supervisory Board has approved a number of changes to X5's Executive Board in order to improve execution on the Company's strategy and streamline operations.
Valeriy Tarakanov, General Director of the convenience store format, has assumed responsibility for the supermarket format. Igor Sotnikov, General Director of the supermarket format, has been appointed as Director of Logistics. Mr. Sotnikov was previously Director of Logistics for the supermarket format and managed the integration of logistics during the merger between soft discounters and supermarkets. Igor will continue to implement the strategy created by former Director of Logistics, Alexander Ermolenko, who has decided to leave the Company.
In other changes, Jan Fuchs, General Director of the hypermarket format, has decided to leave the Company. An announcement regarding his replacement will be made at a later date.
Original source: X5 Retail Group
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