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. Last Updated: 07/27/2016

X5 Says 3rd Quarter Sales Rose 24%

X5 Retail Group, the country’s largest food store operator, said Friday that third-quarter sales rose 24 percent, led by growth at the Pyatyorochka chain.

Retail sales increased to 65.7 billion rubles ($2.22 billion), the retailer said in a statement. Revenue at outlets open a year or more climbed 8 percent, with same-store sales increasing 16 percent at Pyatyorochka and declining 4 percent at the company’s supermarkets.

“The results show that their strategy of price reductions is working well,” said Natalya Smirnova, an analyst at UniCredit in Moscow.

“Shoppers are coming to their discount stores,” she said.

Revenue will increase 24 percent to 25 percent this year on a so-called pro-forma basis, X5 said. The retailer, which had previously predicted an increase of more than 25 percent, cited “the persistence of trading down trends among consumers” for the reduced forecast.