Russian retailer X5 has stayed silent on reports linking it to the acquisition of local rival Grossmart – but admitted it needs to buy businesses to maintain its position in the sector.
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Reports in Russia claimed today (7 September) that Grossmart is up for sale, with X5 and German retail giant Rewe named as the front-runners to buy the company.
X5 has recently been regularly linked with potential acquisitions in Russia’s fast-growing retail sector. In recent months, the company has been linked to rival group Ramstore, which has some 64 stores in the country.
However, a spokesman for X5 refused to be drawn on the latest speculation concerning Grossmart. “We do not comment on such matters in principle,” the spokesman told just-food from Moscow. “But, we still consider M&A as an important part of our growth strategy.”
The spokesman said X5 would look to make acquisitions to fulfil its target of 40% sales growth over the next “4-5 years”.
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By GlobalData“We have quite ambitious plans for the Russian market and in order to achieve our plans, organic growth will not be sufficient.”
Russian retail sales are growing at 14% a year on average, the spokesman said, with “modern retail formats” enjoying 40-60% sales growth.
X5 was formed last year after the merger of the Pyaterochka and Perekrestok chains.
Officials at Grossmart and at Rewe in Germany could not be reached for immediate comment.
