Russian food retailer X5 Retail Group reports revenue growth of 30.7% in the third quarter on the back of solid like-for-like (LFL) sales and strong selling space expansion. Pyaterochka was the main driver of growth with net retail sales up 36.1% y-o-y. X5 added 638 net new stores in Q3 2016 vs. 541 in Q3 2015, contributing additional net selling space of 277.8 th. sq. m. in the quarter. The gross margin decreased by 57 b.p. y-o-y to 24.4% in Q3 2016 due to value proposition refinements including targeted re-investment of operating efficiencies into lower prices to maintain consumer loyalty, as well as on the back of the changes in the retail formats' contribution to gross profit.
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