X5 Group Expands Chizhik Discount Chain Across Siberia with Small-Format Okolo Stores

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X5, the Russian retail group operating several supermarket formats, announced the launch of its Chizhik discount chain in Siberia. The company confirmed that the first Chizhik stores began trading in the Siberian region, marking a new phase for the discount segment in the Far East’s broader market portfolio.

Per the press service, the rollout began with stores opening in the Novosibirsk, Tomsk, and Kemerovo regions, as well as in the Altai Territory. In total, 11 discount shops were opened across seven cities in Siberia, signaling a concentrated push to establish a regional footprint before a wider national expansion. The plan calls for rapid growth, with the number of Chizhik outlets in these regions projected to rise to 45 by October and to 90 by year-end. Looking ahead, X5 Group envisages expanding the Siberian network to around 200 locations in the next year, significantly broadening access to discount formats in the region.

Vladimir Salakhutdinov, Strategy and Business Development Director at X5 Group, noted that the group will begin testing compact, small-format stores in the coming months. These outlets, named Okolo, are designed to cover 90 to 150 square meters, offering a curated assortment tailored to local demand while maintaining the efficiency and value that characterize the Chizhik brand. The initiative reflects X5 Group’s broader strategy to diversify its store formats and optimize logistics in response to regional consumer needs.

In connection with the expansion, X5 Group plans a careful assessment of performance in the new Siberian markets. The company intends to refine product mix, pricing strategies, and in-store experience to align with local preferences, while leveraging the group’s purchasing power and supply chain capabilities. The Chizhik project adds to X5 Group’s portfolio of banners, reinforcing the company’s commitment to affordability and accessibility for a wide range of shoppers across Russia.

As part of the Siberian rollout, regional teams will focus on ensuring product availability, reliable sourcing, and efficient store operations to support rapid growth. The initiative aims to deliver consistent savings for customers through competitive pricing, while also providing a convenient shopping experience with a straightforward, no-frills layout typical of discount formats. The expansion also aligns with broader retail trends in Russia, where discount networks are expanding to capture value-conscious consumer segments in large metropolitan and peripheral areas alike.

Industry observers note that the Chizhik concept complements X5 Group’s existing formats, including Perekrestok, Pyaterochka, and Karusel, by filling a niche for budget-focused, compact stores that can serve densely populated regional centers. The strategic emphasis on small-format outlets in Siberia illustrates an adaptive approach to market conditions, enabling quicker rollout times and tighter store footprints without compromising access to essential goods. The project underscores X5 Group’s goal of strengthening regional presence while maintaining the efficiency standards that support its nationwide operations.

Recent leadership changes at X5 Group include the departure of the former General Director of Perekrestok. The transition is being managed within the company’s broader governance framework, with ongoing oversight from senior executives as the group accelerates its expansion plans. While leadership adjustments occur, the core strategy remains focused on expanding value-oriented formats and reinforcing supply chain resilience across major markets in Russia and neighboring regions.

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