Russian Retail Group X5 Turns to IBM to Support Regional Business Expansion

IBM Infrastructure to Run X5's New Business Management System

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MOSCOW - 08 Jun 2010: IBM (NYSE: IBM) has announced that X5, one of Russia's largest retail groups, has selected IBM to provide the IT infrastructure and services for a new integrated enterprise resource planning (ERP) system. The new system will improve X5's business processes and increase the manageability of data across its 1,372 stores in Russia and Ukraine, supporting the company as it expands into new regions and territories.

The IT infrastructure includes IBM Power Systems and System x blade servers which were chosen for their performance, reliability and cost effectiveness. IBM's Tivoli Storage Manager will help X5 to better manage and protect ever-growing volumes of data and reduce storage costs. IBM's consultants were also engaged by X5 to implement the ERP system and to deliver maintenance services for the infrastructure providing the customer with round the clock support.

"We needed a new IT infrastructure to help take our business to the next level, helping us to reduce costs, create efficiencies and increase our competitiveness on the market," said Teimur Schtenlib, Deputy-CEO for Business Development, X5 Retail Group. "IBM has been able to provide the hardware, software and services for this project, providing us with a solution that supports our expansion strategy and which can grow with our business."

The solution, which is based on software from SAP, will help X5 to automate its cooperation with suppliers, manage prices in line with supply costs and better manage its financial planning and reporting process. Prior to installing the new centralized system, X5 relied on a number of disparate systems and manual processes across its stores.

"Retail companies in Russia are currently focussed on increasing efficiency and productivity while at the same time strengthening their competitive position," said Boris Martynov, Business Development Manager R/CIS. "This system which we have implemented for the X5 Retail Group is one of the largest of its kind in Russia and draws on years of IBM experience in the retail sector."

The project is scheduled for completion by June 2010.

About X5 Retail Group

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