X5 Retail Group, Russia's largest grocer by sales, plans to spend more on its discount chain expansion next year than in 2009, as it hopes to win market share at the expense of distressed rivals.
"In 2010 we are planning to noticeably increase capital expenditures compared to 2009," chief executive officer Lev Khasis told reporters on Thursday.
X5 earlier said it planned to speed up the opening of its discount chain Pyatyorochka, which continued to attract price-conscious customers hit by the economic crisis.
Last month X5 trimmed its sales guidance for 2009, anticipating a tough final quarter, but maintained its capital expenditure plan.
"I do not see potential for any serious upturn of the consumer market to show up in 2010. The situation is likely to remain the same as now, with recovery possible no earlier than at the end of 2010 or at the start of 2011," Khasis said on the sidelines of Adam Smith Conferences' Russian agri-food forum.
He said X5 would channel profits into increasing market share and did not plan to start paying dividends in 2009 to 2010.
X5, which is about 48 percent owned by Mikhail Fridman's empire Alfa Group, generated $9 billion in sales last year.
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