Logistic infrastructure development

Since the end of 2018, the Company has been implementing a strategy of integrating the company into the logistic infrastructure of the Russian e-commerce market. As part of this strategy, the project of launching partner pick-up points based on stores is operating within the Group. At the end of 2021, the number of pick-up points exceeded 3,500. The Company's stores are becoming full-fledged logistic units in the structure of the Russian online trading market.

OR GROUP has the infrastructure to deliver goods to any region thanks to a large retail network and footprint throughout Russia which is the competitive advantage of the Company's online store. This allows to reduce logistics costs, offer customers a click and collect service (it now accounts for 90% of all purchases in the Company's online store) and solve the tasks of goods’ quick delivery more effectively. In fact, each of the Company's stores serves as a small warehouse and a pickup point. Other delivery formats are available to customers of the marketplace and OR GROUP online store as well: with SDEK and DPD courier services, and Russian Post. 

As part of its strategy to integrate into the logistics infrastructure of the online trading market, OR GROUP has been implementing a project of partner pick-up points (PUPs) based on stores since autumn 2018. At the end of 2021, the company had 14 partners, including large logistics operators and online marketplaces. In 2021, OR GROUP started cooperating with AliExpress, Yandex.Market, OZON and SberLogistica to place parcel terminals in retail outlets.

In 2021, the Group increased the number of pick-up points by 56%, from 2,312 to 3,597. Due to the expansion of the pool of partners, the company is increasing the volume of parcels issued: in 2021, they doubled to 2.67 million. The traffic of customers who come for online orders is increasing: in December it amounted to almost 30% of the total store traffic. The partner pick-up point project has a positive impact on financial results: for example, commission income from the project in 2021 increased by 93% to RUB 125 mln.

Assessing the prospects of this area, in autumn of 2021, the company decided to set up a subsidiary as part of the Group — O2 LLC — to develop last mile services.

Number of PUPs, at the end of the year

Number of parcels