Perekrestok (russian: Перекрёсток, Perekryostok, translates as "crossroads" in English or "carrefour" in French, a not-so-subtle reference to the unrelated French retail giant) is

Russia Russia (, , ), or the Russian Federation, is a List of transcontinental countries, transcontinental country spanning Eastern Europe and North Asia, Northern Asia. It is the List of countries and dependencies by area, largest country in the ...

’s largest

supermarket A supermarket is a self-service Retail#Types of outlets, shop offering a wide variety of food, Drink, beverages and Household goods, household products, organized into sections. This kind of store is larger and has a wider selection than earli ...

chain managed by

X5 Retail Group X5 Group (previously known as X5 Retail Group and commonly known as X5) is Russia's largest food retailer. The company operates several retail formats: convenience stores under the Pyaterochka brand, supermarkets under the Perekrestok brand a ...

. In August 2019, the chain opened its 800th store.

History

The chain was founded in 1994, when the first supermarket opened in

Moscow Moscow ( , US chiefly ; rus, links=no, Москва, r=Moskva, p=mɐskˈva, a=Москва.ogg) is the capital and largest city of Russia. The city stands on the Moskva River in Central Russia, with a population estimated at 13.0 million ...

. In 2002, Perekrestok started expanding into other Russian regions. In 2006, Perekrestok and

Pyaterochka Pyaterochka (russian: Пятёрочка, Pyatyorochka, lit=Five) is a Russian chain of convenience stores managed by X5 Retail Group. The chain opened its 15,000th store in the city of Zelenograd, Russia, in May 2019. History The chain open ...

merged, creating X5 Retail Group while keeping the Perekrestok brand unchanged. In 2014, the chain adopted a new store concept, with state-of-the-art retail equipment, better use of selling space, and improved interior and exterior design. In February 2020 Perekrestok has begun the roll-out of new store concept. Among the highlights of the new concept are a updated interior and exterior designs, and a selection of new services offered in-store. The new Perekrestok concept is designed to meet the needs of today's customers, including frequent purchases of ready-to-eat and ready-to-go products. About 50% of the selling space will be dedicated to fresh categories (

fruit In botany, a fruit is the seed-bearing structure in flowering plants that is formed from the ovary after flowering. Fruits are the means by which flowering plants (also known as angiosperms) disseminate their seeds. Edible fruits in particu ...

vegetable Vegetables are parts of plants that are consumed by humans or other animals as food. The original meaning is still commonly used and is applied to plants collectively to refer to all edible plant matter, including the flowers, fruits, stems, ...

dairy product Dairy products or milk products, also known as lacticinia, are food products made from (or containing) milk. The most common dairy animals are cow, water buffalo, nanny goat, and ewe. Dairy products include common grocery store food items in th ...

cheese Cheese is a dairy product produced in wide ranges of flavors, textures, and forms by coagulation of the milk protein casein. It comprises proteins and fat from milk, usually the milk of cows, buffalo, goats, or sheep. During production, ...

deli meat Lunch meats—also known as cold cuts, luncheon meats, cooked meats, sliced meats, cold meats, sandwich meats, and deli meats—are precooked or cured meats that are sliced and served cold or hot. They are typically served in sandwiches or on ...

s, as well as fresh

fish Fish are aquatic, craniate, gill-bearing animals that lack limbs with digits. Included in this definition are the living hagfish, lampreys, and cartilaginous and bony fish as well as various extinct related groups. Approximately 95% of li ...

and

meat Meat is animal flesh that is eaten as food. Humans have hunted, farmed, and scavenged animals for meat since prehistoric times. The establishment of settlements in the Neolithic Revolution allowed the domestication of animals such as chic ...

) or

salad bar A salad bar is a buffet-style table or counter at a restaurant or food market on which salad components are provided for customers to assemble their own salad plates. Most salad bars provide lettuce, chopped tomatoes, assorted raw, sliced vegeta ...

bakeries A bakery is an establishment that produces and sells flour-based food baked in an oven such as bread, cookies, cakes, donuts, pastries, and pies. Some retail bakeries are also categorized as cafés, serving coffee and tea to customers who wish ...

and

café A coffeehouse, coffee shop, or café is an establishment that primarily serves coffee of various types, notably espresso, latte, and cappuccino. Some coffeehouses may serve cold drinks, such as iced coffee and iced tea, as well as other non-ca ...

s. A special area will be focused on the

health food A healthy diet is a diet that maintains or improves overall health. A healthy diet provides the body with essential nutrition: fluid, macronutrients such as protein, micronutrients such as vitamins, and adequate fibre and food energy. A healt ...

s category.

Key metrics

As of 31 December 2019, Perekrestok managed a total of 852 stores that generated revenue of RUB 273 bn.

Pilot projects

In 2008, the first premium class supermarket ''Green Perekrestok'' opened in

Rostov-on-Don Rostov-on-Don ( rus, Ростов-на-Дону, r=Rostov-na-Donu, p=rɐˈstof nə dɐˈnu) is a port city and the administrative centre of Rostov Oblast and the Southern Federal District of Russia. It lies in the southeastern part of the East Eu ...

. In March 2009, the first ''Green Perekrestok'' was launched in Moscow. Some elements of the ''Green Perekrestok'' concept were later incorporated into a modernisation programme that spanned the entire Perekrestok chain.

IT and innovations

In July 2017, Perekrestok launched Smart

Wi-Fi Wi-Fi () is a family of wireless network protocols, based on the IEEE 802.11 family of standards, which are commonly used for local area networking of devices and Internet access, allowing nearby digital devices to exchange data by radio wave ...

, a project to create a free Wi-Fi network in 250 Perekrestok supermarkets in Moscow. The initiative enables the company to show ads and send push notifications to customers immediately after they get connected. In November 2017, X5 introduced

machine learning Machine learning (ML) is a field of inquiry devoted to understanding and building methods that 'learn', that is, methods that leverage data to improve performance on some set of tasks. It is seen as a part of artificial intelligence. Machine ...

to bolster

targeted marketing Targeted advertising is a form of advertising, including online advertising, that is directed towards an audience with certain traits, based on the product or person the advertiser is promoting. These traits can either be demographic with a focus ...

at the Perekrestok supermarket chain, and developed personalised offers for all members of the Perekrestok Club

loyalty program A loyalty program is a marketing strategy designed to encourage customers to continue to shop at or use the services of a business associated with the program. Today, such programs cover most types of commerce, each having varying features and ...

. The company leverages machine learning to group

customer In sales, commerce, and economics, a customer (sometimes known as a client, buyer, or purchaser) is the recipient of a good, service, product or an idea - obtained from a seller, vendor, or supplier via a financial transaction or exchange for ...

s into segments based on common features and create offers for them. The system analyses groups of customers and designs personalised

marketing Marketing is the process of exploring, creating, and delivering value to meet the needs of a target market in terms of goods and services; potentially including selection of a target audience; selection of certain attributes or themes to emph ...

campaigns based on demographic and several hundred behavioural factors, such as: frequency of purchases and ticket size, customer preferences, lifestyle fundamentals, acceptable price levels, favourite product categories and preferred shopping hours. Customer sensitivity to offers is predicted using various analytical models. In addition, the system picks out the most efficient communication channels for a target audience and automatically generates marketing messages. In May 2018, X5 successfully completed a large-scale project to automate the processes of

demand In economics, demand is the quantity of a good that consumers are willing and able to purchase at various prices during a given time. The relationship between price and quantity demand is also called the demand curve. Demand for a specific item ...

and replenishment planning at both stores and at Perekrestok and Karusel distribution centres. To this end, the Company redesigned its core

logistics Logistics is generally the detailed organization and implementation of a complex operation. In a general business sense, logistics manages the flow of goods between the point of origin and the point of consumption to meet the requirements of ...

and

sales Sales are activities related to selling or the number of goods sold in a given targeted time period. The delivery of a service for a cost is also considered a sale. The seller, or the provider of the goods or services, completes a sale in r ...

processes, and introduced an end-to-end system of

supply chain management In commerce, supply chain management (SCM) is the management of the flow of goods and services including all processes that transform raw materials into final products between businesses and locations. This can include the movement and stor ...

, boosting forecast accuracy by 17% and increasing on-shelf availability of products by 5%. The Company also reduced inventory levels by 13%. In November 2019, X5 Retail Group has opened a ‘lab store’ based on Perekrestok in Moscow, to test new technologies that will enhance customer experiencе. Engineers in the lab is conduct in-store trials of electronic shelf labelling, video analytics, smart shelves, digital information panels, and self-scanning and self-checkout systems. If a technology works out in the lab, it will move on for pilot testing in Pyaterochka, Perekrestok and Karusel stores, where X5 experts will also assess the viability and impact of these technologies on sales and costs. Based on the results of the pilot stage, a final decision is made on the implementation of the new technology in X5 stores.

Logistics

In 1998, Perekrestok was the first Russian retail chain to open a modern distribution centre in Paveltsevo, near the

Sheremetyevo Airport Sheremetyevo Alexander S. Pushkin International Airport ( rus, links=no, Международный аэропорт Шереметьево имени А. С. Пушкина, p=ʂɨrʲɪˈmʲetʲjɪvə ''Mezhdunarodny aeroport Sheremetyevo imen ...

. As at 31 December 2019, 11 out of 39 distribution centres of X5 Retail Group serve the large formats of Perekrestok and

Karusel Carousel or Carousel International, also known by its transliterated Russian name Карусель, is a Russian television channel dedicated to children and youth. It was founded by Russian President Dmitry Medvedev. It is currently available in ...

References

External links

* {{Major retail companies Food retailers Food retailers of Russia Supermarkets of Russia Companies based in Moscow Retail companies established in 1994