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Сompany today

OR GROUP (former Obuv Rossii) is a modern selling platform that comprises westfalika.ru marketplace, services ecosystem and the chain of sales and service points under the Westfalika brand.

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In November 2017, OR GROUP raised RUB 5.9 bln during an IPO on the Moscow Exchange (ORUP ticker); the issuer is OR PJSC.

OR GROUP was founded in 2003, it is headquartered in Novosibirsk with a representative office in Moscow. 


OR GROUP today:

As of 31.12.2020

830 stores
throughout Russia

RUB 10.8 bln revenue in 2020

More than 2.1 million
products were sold through the marketplace in 2020

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Business areas

Westfalika selling platform: chain of service and sales points and online platform.

Logistics infrastructure development.

Services ecosystem.

Footwear and accessories manufacturing.

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Westfalika selling platform: chain of service and sales points and online platform

OR GROUP develops the Westfalika selling platform, which includes a chain of service and sales points throughout Russia and an online platform of the same name. The company sells both products under its own trademarks (private labels) and partners' products (marketplace) through its own online and offline sales channels.

Universal store format

In 2020, the company transformed the fashion store into the outlet with a universal variety of stock, which positively affects the conversion rate and the number of items in the receipt. The Group significantly expanded the variety of stock due to the transition to the marketplace model in cooperation with suppliers. To interact with its partners, OR GROUP launched the Prodayom online platform (www.продаем.рф) at the end of 2019, where it is possible to track all the goods and manage balances online.

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In 2020, the company achieved significant results on this project: by the end of the year, it cooperated with 750 partners and sold 2,105 million partner products in just one year. Household goods were the leaders in the growth rate, 80% of their sales accounted for dishes, textiles and small household appliances. Textiles is the highest-margin product category.

Since 2020, OR GROUP has been rotating the variety of stock including fashion collections in stores more frequently. Now the company forms a stock matrix for each month, which allows monitoring seasonal fluctuations, short-term spikes in demand for certain products and, as a result, increase sales.

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Online sales and mobile application

In the 4th quarter of 2020, the company launched a new mobile application westfalika.ru, and an updated version of the westfalika.ru website started operation in the marketplace format. It allows OR GROUP to present all partners' products on its online platforms. The company is further improving the functionality of the website: the catalogue has been significantly modernized. Now it is scalable and has unlimited possibilities for expansion. The growing popularity of the mobile application and the development of the westfalika.ru online platform will enable the Group to continue to actively increase online sales. In 2021, the company plans to raise its share in the revenue of the selling platform to 30%.

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At the end of February 2021, OR GROUP transferred the Westfalika.ru online platform to its server facilities located in Novosibirsk which was a part of its online sales development strategy. It will allow to significantly improve the website performance, manageability and efficiency of its work, implement changes more flexibly and quickly, collect and process analytics on the online platform functioning, develop a simpler and faster exchange with the company's databases, synchronize updates on the website and in the Westfalika mobile application.

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Logistic infrastructure development

Since the end of 2018, the company has been implementing the strategy of integrating into the logistic infrastructure of the Russian e-commerce market. As part of this strategy, the Group is working on a project to open partner pickup points (PUPs) in stores. At the moment, the company's stores are becoming full-fledged logistic units in the structure of the Russian online retail market.

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At the end of 2020, OR GROUP cooperated with 13 partners, including major logistic operators such as PickPoint, DPD, Russian Post, Sberlogistika and others. In 2020, the Group became the first network partner of Wildberries in launching PUPs. In January 2021, the company began to cooperate with Cainiao, one of the world's largest IT and logistic operators (Cainiao Network is part of Alibaba Group) in opening PUPs.

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Last year OR GROUP increased the number of PUPs by more than 30% — from 1,732 to 2,312. In 2021, their number will more than double. The project provides a significant increase in traffic, which amounted to 21% of the total store traffic at the end of December 2020. Partners such as Wildberries, PickPoint and DPD are making a significant contribution to the growth in traffic. In 2020, the company had a more than twofold increase in parcel delivery volumes, and the Group attracted an additional 1.5 million customers. In 2021, OR GROUP intends to raise the monthly volume of issues up to 500 thousand and to grow foot traffic by 6 million persons. The company also receives additional revenue as a commission and plans to triple it in the coming year.

Services ecosystem

The Group's stores have an innovative Arifmetika loyalty program, which combines the traditional savings and discount system and a set of add-on services such as instalment payment, cash loans, payments at the checkout, etc. By the end of 2020, the number of Arifmetika cardholders increased by 11.4% and exceeded 2.8 million persons. Arifmetika is an ecosystem that creates a comfortable environment for customers to interact with the company's brands.

The structure of OR GROUP includes Arifmetika MCC LLC, which specializes in issuing cash loans to the Group's clients. At the end of 2020, revenue from such activities increased by 23.6%, the average loan amount grew by 26.3%, and the portfolio rose by 17.3%. This is the direction that allowed the company to generate cash flow even in conditions when most stores were not functioning during the period of anti-pandemic restrictions.

The Group considers add-on services for customers to be promising, especially in the remote format. The company plans to introduce and develop new technologies in 2021, including online loan processing.

Footwear and accessories manufacturing

OR GROUP includes OBUV ROSSII LLC, which manages the manufacturing of shoes and accessories. Today, the company's production line is represented by two production sites in the Novosibirsk region. OBUV ROSSII manufactures shoes with all the main sole attachment types — gluing, injection moulding and combined attachment. Manufacturing is fully automated, the modern equipment of the leading world manufacturers, such as Desma, Newlast, Orisol and others is used at the enterprises of OBUV ROSSII. The company manufactures shoes under its brands S-TEP, all.go, Pioneer of Arctic Travel and both sells them through its retail networks and cooperates with wholesale customers, moreover, it cooperates with the corporate sector for the production and supply of special shoes.

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To ensure business growth, OBUV ROSSII uses various financial instruments such as traditional lending, a bond program and equity capital. Currently, five issues of the company's bonds for 5.5 billion rubles are being traded on the Moscow Exchange. In December 2020, the Expert RA rating agency confirmed the rating of OBUV ROSSII at the level of ruBBB according to the updated methodology. The rating outlook is developing.

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