News
Obuv Rossii will rebrand the business
30 November 2020, Russia, Novosibirsk: On 26 November, the Board of Directors of OR PJSC, the parent company of Obuv Rossii Group (MOEX: OBUV/hereinafter referred to as the «Company» of «OR PJSC», or jointly referred with affiliate and associated companies to as «Obuv Rossii» or «Group»), has approved the Group's business rebranding program. Obuv Rossii Group is changing its positioning: it goes beyond the fashion segment and becomes a universal retailer by developing a modern trading platform and an online marketplace. The Group will exclude the word «Obuv1» from its name. The retailer’s new name is OR GROUP. This is the first corporate rebranding in the history of the Group.
It is planned to shift away from the highly specialized positioning of the company as a shoe retailer since the Group's business has significantly transformed and the company is developing new directions that go beyond the fashion segment. Now the Group is prioritizing a universal retail format and an offline/online marketplace, it is being integrated into the logistics infrastructure of the Russian online trading market and is developing financial services. The new initiatives will help the Group to significantly expand its stock within the next 5 years, double its retail revenue, and strengthen its online presence by increasing the share of online sales in retail revenue to 50%.
The Obuv Rossii brand was launched in 2003 and it represented the main positioning of the company as a shoe retailer. The Group's business is growing rapidly, the company is constantly implementing new directions. Especially significant changes have taken place in 2019-2020, when the Group has improved its retail format, has gone beyond fashion retail and has significantly diversified its variety of stock, has begun developing the concept of a store as a service point, has developed its financial services, which make up a significant share in revenues.
«We have been considering such changes for a long time. In 2018, we reviewed our strategy from the point of locations, stopped to open outlets in malls and started launching them in small towns instead. In the same year, we started to actively develop the service component of the business by launching the project of partners’ pick-up points. Since 2019 we have done a lot of work to improve our business model by launching own marketplace, and the COVID-19 pandemic has accelerated many business transformation processes and the development of remote technologies, — comments Anton Titov, CEO of Obuv Rossii Group (OR Group), — Our goal is not to focus on a highly specialized shoe market, but to expand the scope of the Group's activities which opens up new growth opportunities, and to convey this idea to the business community. However, we keep the continuity with the old name, leaving the abbreviation OR as the basis of the new name».
The challenge that the company sets itself is to increase business volumes, revenue, EBITDA and net profit by entering new markets. The Group considers the universal retail format and marketplace model to be the most promising in terms of further development.
The rebranding also includes the renaming of the legal entities being the part of the Group and will take place in two stages. First of all, Obuv Rossii LLC, which is the Group's main operating company and the bond issuer, will be renamed. Its name will be OR LLC. Then the parent company, which is the securities issuer, will be renamed (from OR PJSC to OR GROUP PJSC). Besides, the stock ticker on the Moscow Exchange will be renewed: the company will change the ticker from OBUV to ORGG.
Company profile:
Obuv Rossii (MOEX: OBUV) (the parent company is OR PJSC) is a nationwide retail company. Obuv Rossii was established in 2003, it is headquartered in Novosibirsk and has a representative office in Moscow. The Company manages 8432
stores (175 operate as a franchise) under the brands of Westfalika, Peshekhod («Pedestrian»), Rossita, Emilia Estra and Lisette, in addition to developing brands of clothes and footwear for the active lifestyle brands of S-TEP, all.go and Snow Guard. Furthermore, the Group also owns two manufacturing facilities in the Novosibirsk region.
In October 2017, Obuv Rossii raised 5.9 billion rubles in an IPO on the Moscow Exchange (ticker: OBUV), the issuer being OR PJSC.
In September 2020, Expert РА confirmed the creditworthiness rating to Obuv Rossii Group at ruBBB+ level, a «stable» forecast.
In accordance with the audited Financial Statements under IFRS, the Group's revenue amounted to RUB 13.7 billion for the full year of 2019, net profit was RUB 1.7 billion, and EBITDA was RUB 3.6 billion.
Website of the Group:
Telegram:
1
Shoes (Russian)
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As of 30.11.2020.
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