X5 Retail Group has unveiled a major price initiative to be rolled out at all of its Pyaterochka stores in a bid to win over cash-strapped Russian consumers.
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“Everything on Pyaterochka’s shelves will now be offered at the lowest price in the market,” claimed X5 CEO Lev Khasis.
Pyaterochka already operates a “lowest price” concept for basic staples, with the aim of being the cheapest in the market for staples, which account for 40% of sales and 20% of the retailer’s product assortment.
By extending this principle to the rest of its assortment, X5 said it hopes consumers will be encouraged to “spend more at our stores”.
“Rather than shopping around for cheaper prices, we aim to become the one-stop shop for value-conscious shoppers. We expect our sales and market share to lift as a consequence of this strategy,” a spokesperson for the group told just-food.
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By GlobalDataX5 said it will also rationalise Pyaterochka’s assortment to give priority to “category leaders” and ensure efficient utilisation of shelf space.
“Pyaterochka has been winning customers looking for value in current conditions. We now see further opportunities for gaining market share by asserting our unbeatable price leadership even more clearly. We expect this strategy to drive Pyaterochka’s like-for-like sales growth, while at the same time, we will leverage our low cost operations and advantages in purchasing power and logistics to manage margins,” Khasis said.
