H5's Ready-to-Eat Food Sales Soar 40% Amidst Economic Challenges
H5, a leading Russian food retailer, has reported a significant increase in its ready-to-eat food turnover for the first half of 2025. The company's revenue grew by 40% year-on-year to reach 224 billion rubles. Meanwhile, the 'Chizhik' network saw an 87% increase in revenue by the end of July 2025. These developments come amidst a challenging economic backdrop, with the GDP growing by 1.1% and 79% of retailers describing the situation as 'difficult'.
H5's CEO, Igor Shekhterman, attributed the growth to the company's expansion into new formats, including 'Naletu!' quick stores and 'Select Perekrestok' stores with cafes and pick-up points. Despite the economic challenges, consumers are adapting their spending habits, with 79% trying to save and over 30% redistributing their expenditure across different categories. This shift has led to an increased demand for ready-to-eat products, with the share in retailers' sales projected to reach 9 trillion rubles by 2026.
The online market share in Russia's grocery retail is also expected to grow, projected to double by 2029 to 11%. However, the stock market today indicates a slowdown in growth, with the retail market dynamic in Russia reported to be 5% in August 2025. Despite this, there has been no recent news of companies acquiring ready-to-eat production facilities in Russia. The level of credit defaults for physical persons reached a high of 4.7% in 2021, reflecting the financial strain many consumers are under.
H5's strong performance in the ready-to-eat food sector demonstrates the resilience of the company and the sector amidst economic challenges. As consumers adapt their spending habits and demand for convenience grows, the ready-to-eat market is expected to continue expanding. However, retailers must navigate a slowing stock market today and financial strain among consumers to maintain this growth.
