X5 Retail Group Builds a Post-Merger Unified Multiformat Organization

Capgemini helps Russian food retailer X5 achieve a smooth integration toward a “single business” following the merger of two independent companies.

The Situation

X5 Retail Group N.V. is Russia’s largest food retailer in terms of sales. It was formed in 2006 through the merger of two independent companies: Perekrestok, which operated convenience stores, standard supermarkets and city hypermarkets; and Pyaterochka, which operated “soft-discount” neighborhood stores.

The new company wanted to increase profitability while minimizing merger disruption and ensuring a smooth integration toward a “single business.”

The Solution

Capgemini worked with X5 Retail Group to develop a standard and efficient multiformat regional organization, providing cost reductions and enabling the company’s aggressive growth strategy.

The Result

The new unified organization is helping X5 achieve its integration objectives:

  • implementing best practices from both companies
  • finding and implementing synergies to increase operating profit and reduce expenses
  • creating organizational structure and business processes (including multiformat regional offices) to support a high company growth rate
  • creating a mechanism to integrate all companies from future merger and acquisition deals to support growth and consolidation of the sector.