UPDATE 1-Russia's X5 wants fresh look at low-cost shops as profits fall [Reuters]
The Bank of New York Mellon Corporation (BK)
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Source: Reuters
UPDATE 1-Russia's X5 wants fresh look at low-cost shops as profits fall | Reuters Reuters Staff 3 Min Read * Q1 net profit falls as costs rise across the board * Margins tumble even though promotional activity abates * Head of flagship business unit steps down * Shares fall 4.5 pct (Recasts, adds CEO comments, details, analysts) MOSCOW, April 26 (Reuters) - X5 Retail Group said it needed a fresh look at its flagship cut-price store business in a tough market environment after disagreements over strategy with the unit’s head resulted in her departure. Russia’s biggest food retailer, X5 has been pressing ahead with the expansion of its low-cost Pyaterochka chain as an economic downturn hit households’ incomes, denting consumer spending. Such stores, which at X5 contribute around 80 percent of all sales, generates stronger revenues when promotional activity is high but that eats into profit, making strategy a delicate balancing act. Pyaterochka General Director Olga Naumova, praised by a
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