17 Nov 2009 14:10

X5 Retail Group in negotiations with Sberbank for card payment services

MOSCOW. Nov 17 (Interfax) - X5 Retail Group is in negotiations with Sberbank to use the bank's debit card system in the group's Pyaterochka discounter stores, X5's CEO, Level Khasis, said on Tuesday.

He said that Pyaterochka chain does not accept payment by bankcards with the exception of 20 stores in St. Petersburg where an acquiring project is underway. He added that the commission for international payment systems was too high for the discounter format.

"It comes to 1.5%-2% [international payment systems]. The Sbercard project could be lower at 0.5%-1%," Khasis said. The company said that users of Sberbank cards, pensioners and people on a budget, were one of the main client groups for Pyaterochka.

X5 Retail Group is Russia's largest retail chain by sales. Net revenue totaled $8.9 billion in 2008, EBITDA was $803 million and net profit excluding a goodwill write-off was $112 million.

At the end of September, X5 managed 1,217 stores covering 962,700 square meters of floorspace. This included 952 Pyaterochka discounters, 210 Perekrestok supermarkets and 55 Karusel hypermarkets. The company also has 586 franchise stores.