X5 Retail could consolidate revenues from its franchises
MOSCOW. June 24 (Interfax) - X5 Retail Group has approved the implementation of a back franchising program, which will allow the retailer to consolidate revenues form its franchises, the company's corporate relations director, Mikhail Susov, told journalists.
"There is potential in this," he said, adding that the retailer would publish details about the program in the near future.
The Retailer will pay franchises compensation for consolidated revenue.
At the end of March, X5 had 640 franchises in operation in Russia.
X5 Retail Group is a major Russian retail chain that at the end of last year was running 1,372 stores, including 1,039 Pyaterochka discounters, 275 Perekrestok supermarkets, and 58 Karusel hypermarkets.
Its shareholders are Alfa Group (47.9%), the Pyaterochka founders (23.1%), and company management (1.9%), and 27% of shares are in free float. Company sales revenues rose 4% to $8.67 billion in 2009.