X5 still planning to open 3.5-bln ruble distribution center near Kemerovo in 2025 - authorities

KEMEROVO. March 18 (Interfax) - Preparatory work for the construction of a universal warehouse for X5 Retail Group has started in the Yagunovsky rural settlement of the Kemerovo District, the press service of the Kuzbass government said.

Metal structures are now being installed and the site is being prepared for the installation of the frame.

"A building with a total area of over 47,800 square meters is planned for launch in 2025. It will be occupied by warehouse space for the Pyaterochka and Chizhik retail chains," the statement says.

The project will cost more than 3.5 billion rubles, with payback expected in over six years.

As reported, in October 2023, Director of Kemerovo Distribution Center LLC (associated with PFO Group), Konstantin Zheleznov, announced this project during an investment council, and similarly estimated it at 3.5 billion rubles. He also said construction was planned for completion at the end of 2025. He said that, when the facility is commissioned, about 700 jobs would be created, which the press service confirmed.

X5 Retail Group also announced in October that Chizhik chain stores would be opening in the Novosibirsk, Tomsk, and Kemerovo regions as well as in Altai Territory.

X5 is the largest retailer in Russia in terms of revenue. The group's retail chain operations consisted of 24,472 thousand stores in 2023, including 21,308 Pyaterochka convenience stores, 972 Perekrestok supermarkets, 1,500 Chizhik hard discounters and 610 Krasny Yar and Slata stores.