On February 28, 2024, X5 Group, a prominent Russian food retailer managing the Pyaterochka, Perekrestok, and Chizhik retail chains, announced a significant expansion in its supplier network, adding 1,332 new suppliers in 2023. Among these new partnerships, 1,008 suppliers are based in Russia, indicating X5’s strong focus on supporting local businesses. The new additions include a diverse mix of 527 micro-enterprises and 285 small businesses, reflecting X5’s commitment to fostering a supportive ecosystem for smaller-scale producers.

By the end of 2023, X5’s expansive network boasted collaborations with over 7,000 suppliers, ensuring a wide array of products on the shelves of its retail chains. The Central Federal District saw the largest influx of new suppliers, with 389 partnerships formed, highlighting the company’s strategic focus on enhancing its offerings in this region. Notably, the Far Eastern Federal District emerged as a significant new market for X5, with 185 new suppliers, underscoring the company’s efforts to diversify its product range with offerings from across the country.

The initiative to collaborate with a vast number of new suppliers aligns with X5’s strategy to enrich its product assortment, meet consumer demands more effectively, and support the local economy by providing a platform for smaller businesses to reach a broader customer base. The integration of products from these new suppliers will likely contribute to the retailer’s competitiveness and appeal to a wide range of consumers.

In its pursuit of promoting small businesses, X5 Group has also launched 43 Farmers’ Markets within its stores across 23 regions, offering local producers direct access to consumers. This initiative, coupled with plans to open up to 30 more Farmers’ Markets in 2024, reinforces X5’s commitment to the development and support of local agriculture and small-scale producers. Through its Dialog.X5 online portal, the company provides its partners with essential analytical tools and resources, including a free tracker of key metrics, to help them understand market trends and optimize their business strategies.

These efforts are part of X5’s broader strategy to support small businesses through various forms of engagement, including agricultural contracts and the Farmers’ Academy educational project. By fostering a robust and diverse supplier network, X5 Group not only enhances its product offerings but also plays a crucial role in supporting the growth and sustainability of small businesses across Russia.