×
Enjoying ad-free content?
Since July 1, 2024, we have disabled all ads to improve your reading experience.
This commitment costs us $10,000 a month. Your support can help us fill the gap.
Support us
Our journalism is banned in Russia. We need your help to keep providing you with the truth.

Vysotsky Continues X5 Exodus

A co-founder of X5 Retail Group is leaving the company, extending a turbulent spell that has also seen the departure of the chief executive and the firm's first ever quarterly like-for-like sales fall.

Oleg Vysotsky, who co-founded X5's predecessor Pyatyorochka in 1999 and now heads up its discount format, told Reuters that he had resigned and would "wait and think about other projects in the retail and services sector."

X5 confirmed Vysotsky's resignation, adding that he had agreed to oversee a transition period.

"The company has already identified internal and external candidates and is conducting an exhaustive search to consider the broadest pool of management talent for this position," the firm said in a statement.

X5, Russia's biggest retailer by sales, has been mired in management and performance issues since long-serving chief executive Lev Khasis jumped ship to join U.S. giant Walmart last year.

His successor Andrei Gusev slashed the growth target for last year and reported a 2 percent fall in like-for-like sales for the fourth quarter, the company's first since its creation in 2006.

"We view this announcement … to be the most important event in the row over top management changes in X5 after former CEO Lev Khasis stepped down," VTB Capital analyst Maria Kolbina said in a note.

"Coupled with several consecutive quarters of weak fundamentals, this has created a lot of downbeat sentiment over X5's investment case," she added.

A string of top managers have left X5 since Gusev replaced Khasis, including the directors of supermarkets and hypermarkets, the commercial director, the logistics director and vice president in charge of private labels.

X5's shares are down 35 percent since Khasis resigned a year ago, despite a near 16 percent rally in 2012 to date.

… we have a small favor to ask. As you may have heard, The Moscow Times, an independent news source for over 30 years, has been unjustly branded as a "foreign agent" by the Russian government. This blatant attempt to silence our voice is a direct assault on the integrity of journalism and the values we hold dear.

We, the journalists of The Moscow Times, refuse to be silenced. Our commitment to providing accurate and unbiased reporting on Russia remains unshaken. But we need your help to continue our critical mission.

Your support, no matter how small, makes a world of difference. If you can, please support us monthly starting from just $2. It's quick to set up, and you can be confident that you're making a significant impact every month by supporting open, independent journalism. Thank you.

Once
Monthly
Annual
Continue
paiment methods
Not ready to support today?
Remind me later.

Read more