OREANDA-NEWS. On 15 August 2008 X5 Retail Group N.V., Russia's largest retailer in terms of sales (LSE ticker: “FIVE”), and the System Analysis Institute of the Russian Academy of Sciences (“ISA RAN”), an acknowledged leader in traditional and interdisciplinary research, announced that they have signed an agreement on scientific research and cooperation.

This agreement is a first step on the way to setting up a research institute which will focus on modern retailing – the Retail Research Centre of ISA RAN.  The Centre will concentrate on studying issues related to the establishment, operation and development of retail chains based on international and Russian experience.

The Director of the Centre, PhD in Economics and X5 Retail Group CEO  Lev Khasis commented:

“Today, when the Russian retail market is so young and fast-growing, we clearly feel the lack of a research base to adequately assess new issues and propose efficient solutions.  Our Center will employ both leading Russian researchers and X5 professionals with considerable industry expertise.  Such cooperation will enable us to look at retail chains and the industry as a whole from different angles.  We will analyse international and Russian experience with focus on regulation, pricing, brand creation and promotion, IT systems in retail and many other issues that play an important role in its future development”.    

The Director of ISA RAN, corresponding member of the Russian Academy of Science  Jury Popkov added:

"Creation of the Retail Research Centre by ISA RAN, which is well known for its interdisciplinary research, represents our reply to the actual sector’s needs.  Our scientific research is highly recognized from the fundamental stand point, while joint efforts with industry experts will enable us to form modern retail concepts and ideas that can be efficiently employed in practice”.

In accordance with the agreement, X5 will finance the Centre’s research projects, assist ISA RAN in staffing the Center with its employees, suggest topics for analysis, provide the Center with available research materials.

ISA RAN, in its turn, will be responsible for setting up the Center, staffing it with researchers, management and administration of the Centre.