X5 Retail Group Builds a Post-Merger Unified Multiformat Organization
Capgemini helps Russian food retailer X5 achieve a smooth integration toward a "single business" following the merger of two independent companies.
- Industry
- Retail
- Country
- Europe
- France
- Solution
- Transformation Consulting
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2008-06-06 05:55 PM
The Situation
X5 Retail Group N.V. is Russia’s largest food retailer in terms of sales. It was formed in 2006 through the merger of two independent companies: Perekrestok, which operated convenience stores, standard supermarkets and city hypermarkets; and Pyaterochka, which operated “soft-discount” neighborhood stores.
The new company wanted to increase profitability while minimizing merger disruption and ensuring a smooth integration toward a “single business.”
The Solution
Capgemini worked with X5 Retail Group to develop a standard and efficient multiformat regional organization, providing cost reductions and enabling the company’s aggressive growth strategy.
The Result
The new unified organization is helping X5 achieve its integration objectives:
- implementing best practices from both companies
- finding and implementing synergies to increase operating profit and reduce expenses
- creating organizational structure and business processes (including multiformat regional offices) to support a high company growth rate
- creating a mechanism to integrate all companies from future merger and acquisition deals to support growth and consolidation of the sector.
