Chizhik (discounter chain)

Performance indicators

2023: Revenue growth by 10.1% to RUB 118.43 bln

The revenue of the Chizhik network (part of the X5 group) at the end of 2023 amounted to 118.43 billion rubles, having tripled compared to 2022. This data became known in October 2024.

According to TASS, citing the presentation of Chizhik, the share of the retail network in the segment of "hard" discounters at the end of 2023 amounted to 10.1%, by the end of 2024 it is expected to grow to 16.1%. In 2028, the network expects to reach 30% of the market share in the segment.

source = Chizhik

In 2023, Chizhik opened 983 new stores, bringing their total number to 1,500, and revenue tripled year-on-year.

{{Quote 'In accordance with the X5 regional expansion strategy, during the year our format is "tough" discounters opened their first stores in Siberia and plans to actively expand their presence in this region. Against the background of stable consumer demand, the development of the Chizhik retail network remains one of the most important priorities for X5, the group said in its 2023 statements.}}

Managing Director of Chizhik Ilya Yakubson said that the company expects to reach revenue of 1 trillion rubles in 2028.

Our strategic goal, just like the X5, is to be the leader in Russian retail as a whole, is unconditional leadership in the segment of "hard" discounters, he stressed.

At the end of September 2024, Chizhik opened a 2,000-strong store, and at the end of 2024, as Yakubson noted, the chain will have more than 2.3 thousand retail facilities. In 2027, Chizhik plans to increase the number of stores to 5 thousand.

By the end of 2023, the total retail space of Chizhik chain stores amounted to 442,110 square meters. m, which is 190.2% more than a year earlier, when the indicator was measured 152,370 square meters. m.^[1]

History

2021:10 stores launch

In early June 2021, X5 Group announced the development of the Chizhik discounter chain. 10 points were launched, and by the end of 2021 it is planned to open 45.

The chief executive officer of the company, Igor Shekhterman, told RBC about this. He called the new stores "hard discounters."

The first stores of the Chizhik chain were opened in the Moscow region. Their retail area is about 250 square meters. m, and the assortment is about 800 items. The emphasis in the new format is on its own brands - in the target model their share will be 60%. Predominantly, stores will offer food, as well as some consumer goods at low prices or "below average."

X5 Group launches Chizhik network of "hard discounters"

Earlier at a conference for investors, Vladimir Salakhutdinov, director of strategy for the X5 group, said that the Chizhik brand should be "positive, friendly and forming positive emotions."

We took the best that foreign discounter models have, adding the best technological know-how that X5 has, - said Salakhutdinov.

There are several hard discounter networks in Russia, but none of them today meets the business model that will be implemented in Chizhik, the top manager added. According to Salakhutdinov, the distinctive features of the group's new project are not only low prices, but also a high share of STM.

This is a brand name for products of high, decent quality, says an X5 representative. - We cannot be compared with other players who work according to the promotion model, offering goods at reduced prices.

The retailer plans to develop Chizhik to the scale of the federal retail network, comparable in number of stores with Pyaterochka and Perekrestok^[2]

Notes