OREANDA-NEWS. OJSC Voentorg and X5 Retail Group N.V., one of the leading Russian food retailers, announce the launch of a joint project, a VoentorgPyaterochka-branded retail chain.

The project is intended to improve the living environment for the military and their families and is set to be rolled out at Voentorg's retail facilities, which are located in close proximity to where the military and their families live.

According to the memorandum signed on 20 August, the first stage of the project will include the opening of 5-7 VoentorgPyaterochka stores in Moscow and Moscow Region by the end of November 2014. Over 100 similar stores are slated for opening in Moscow and the Central Federal District in 2015. The average sales floor of the new stores would total 350 sq m, while the product mix would embrace approximately 4,000 items with food products accounting for 75% of the mix. Voentorg will be in charge of the stores operations management with the entire project based on the reverse franchising model developed by X5 Retail Group within the nationwide Pyaterochka retail chain.

The project also provides for the sales of private label items under the Russian Army umbrella brand in both joint project and regular Pyaterochka stores.

Previously, Voentorg and Pyaterochka retail chain had only collaborated on some charity projects. For example, this May the trading companies jointly sponsored a campaign on occasion of the Great Patriotic War Victory Day. On 6-9 May, Voentorg and Pyaterochka officers presented commemorative gift sets to over 400 veterans gathered around festive tables in Moscow, Moscow and Tula Regions for receptions and shows organised by non-government veteran associations. The first joint event was held on 6 May at the headquarters of the Committee for the National Russian Public Organisation of War and Military Service Veterans in Moscow. General Mikhail Moiseev, the Committee Chair, Vladimir Tobolnov, First Deputy General Director at Voentorg, and Igor Pletnev, Director for Development at Pyaterochka, were all among the speakers at the ceremony.