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X5 Retail Group to introduce new pricing strategy
X5 Retail Group is going to introduce a new pricing strategy in its Pyaterochka stores. To date, only 40% of its product range has been at the minimum market price. In the next two to three weeks, prices on all products will be reduced to the minimum market price by all 870 Pyaterochka owned stores. The new pricing will be not introduced in some Pyaterochka stores, which are operated on a franchise basis. As pointed out by Oleg Vysotsky, General Director of the Pyaterochka format, a crisis is a good time to strengthen its market position and gain the loyalty of customers.
“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,” the CEO Lev Khasis said.
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