Dry Port Aimed to Aggregate Foreign Goods Will Appear in the Smolensk Region

As part of the cooperation agreement, signed by the Regional Administration and X5 Retail Group management during the Russian Investment Forum in Sochi this February, Governor Alexey Ostrovsky has visited the Moscow-North distribution centre and has learnt about its operating principle. The region’s chief executive has also held a working meeting with Stanislav Naumov, Vice-President of the company, concerning the possibility of undertaking common projects in the region, such as, establishing a similar centre within  the Phoenix State Industrial Park.

The cooperation agreement signed during the investment forum in Sochi is aimed at developing and improving retail business within the region, as well as at promoting the Russian products, including the ones made by the local manufacturers, through the company's retail chains. Thus, as part of this strategy, a Perekrestok supermarket opened at Krasninskoye highway of Smolensk in February this year, which has become one of the first X5 Retail Group stores in the region’s central city and supplies local products.

In addition, the company has plans for locating a large distribution centre (DC) with an area of 16 thousand square meters in the region, which will provide long-term storage, processing and sale of fruits and vegetables. It will allow the farmers from Smolensk and from other neighboring regions to get an additional channel for guaranteed sales. It is also important to note that the expected social effect will result in creation of 300 new jobs. However, according to preliminary data, the amount of investments will be about 1.5 billion rubles.

According to Vladislav Rozov, a DC Manager, who was also present at the meeting, these wholesale warehouses provide opportunities for placing almost all types of goods (including vegetables, fruits, meat and fish, dairy products, eggs, meat and fish products, etc.). They include several special areas, where required temperature is maintained. According to Vladislav Rozov, the supply of goods through the distribution centres gives a number of advantages to X5 business partners, such as reduced transport costs, expanded range of goods in retail stores, sales growth and so on.