Page 14 - bne_Tech_06_2020

Fintech & E-commerce
June 2020 www.intellinews.com I Page 14
standing rival Magnit, but has garnered more accolades since then. In May X5 became the leading online grocer in the country after online sales jumped almost 5-fold year on year in April 2020
to RUB1.7bn ($23mn) thanks to the nationwide lockdown that was imposed on March 30.
“X5 Retail Group has previously announced that its online sales grew 4.7x y/y to RUB1.7bn in April (including VAT) and that, according to its estimates, it has become the largest e-grocer in Russia. For the company, online sales represented 2% of its total in those areas where it is present (Moscow, Moscow Region and St Petersburg) vs. 0.2% on the consolidated level last year,” VTBC said on May 19.
In the e-grocery segment, X5 Retail Group is present in two sectors. In the stock-up service [its supermarket brand] Perekrestok.ru offers 27,000 SKUs (67% in the food category) and had 262,000 orders in April, with an average spend of RUB4,537 (26.5% higher than in 2019), according to VTBC.
“In April, [X5] opened its fourth dark store in Moscow, increasing its order capacity in Moscow and the Moscow Region by 40% (10,000) during this time of elevated demand (15,000 in the normalised times). The growth plan includes launching the service in Nizhny Novgorod in June,” VTBC said.
X5’s express delivery service from convenience outlets was rolled out from January 2020, and currently covers more than 200 stores in Moscow,
St Petersburg and Kazan, while the plan is to reach 500 outlets in six cities by the end of this year.
In April, Delivery.Pyaterochka, another of the company’s online services, reported 259,000 orders across 4,000 SKUs with an average spend of RUB2,006 and delivery time of 1.5-2 hours.
The company’s core competitors, Samokat (the pioneer in this service) and Yandex.Lavka, had over 1mn and 780,000 orders respectively.
Recently, INFOLine has released its estimates for the 1Q20 and April trading results, and also updated its annual estimates for the segment. In 2020, it sees the market surging 3.3x to RUB135bn, with express delivery channels to top RUB30bn (vs. RUB700mn a year ago).
“In the medium term, e-grocery could be the most rapidly increasing segment of e-commerce, but turnover of RUB135bn in 2020 would still represent only 0.8% of the food retail market. Our roadmap for the e-grocery transformation is presented in our E-Grocery sector - Quarantine canteen, of 8 April,” VTBC said.