X5: The company's digital business revenue grew 362 % in 2020

X5 Retail Group N.V. announced preliminary consolidated operating results and net retail revenue for the Q4 and 12 months of 2020.

The growth rate of X5's net revenue for the entire 2020 was 14.3 % year-on-year (YoY) in rubles. This result was achieved due to a 5.5 % increase in comparable sales and an 8.3 % increase in shopping space.

Revenue from digital businesses (Perekrestok Vprok, express delivery, and 5Post) increased by 362.2 % YoY up to RUB 20.1 bn, accounting for 1.0 % of consolidated revenue in 2020, and added 0.9 pp to the growth rate of the annual consolidated revenue.

Net offline revenue of the key chains Pyaterochka and Perekrestok increased by 16.5 % and 13.9 % YoY, respectively.

Convenience stores have contributed the most to business growth in 2020 due to traffic inflow from traditional stores and hypermarkets.

In 2020, X5 reportedly opened 1,410 new stores, 583 convenience stores and 46 supermarkets (including 24 Karusel stores transferred to Perekrestok) have been renovated in accordance with the new concepts.

The growth rate of net retail revenue in Q4 2020 was 12.8 % YoY in rubles. This was achieved through a 5.1 % increase in LFL sales and an 8.3 % increase in shopping space.

LFL average check remains the main driver of LFL sales growth as during the second wave of COVID-19 the number of visits to stores decreased but the visitors bought more each time.

The revenue of digital businesses amounted to RUB 8.5 bn in Q4 2020 and added 1.4 pp to the growth rate of consolidated revenue. Perekrestok Vprok's revenue increased by 191.2 % in Q4 2020.

Net offline revenue of the key chains Pyaterochka and Perekrestok increased over the reporting period by 15.1 % and 11.9 % YoY, respectively.

In December, the average number of orders per day in Perekrestok Vprok and express delivery services from Pyaterochka and Perekrestok stores was 52,200.

In Q4 2020, X5 added 355 stores, 64 convenience stores and 7 supermarkets (including 4 Karusel stores transferred to Perekrestok) have been renovated in accordance with the new concepts that continue showing positive customer response.