Press-releases
The Turnover of Obuv Rossii's Marketplace Exceeds RUB 1 bln in Three Months
Novosibirsk, 20 March 2020: Obuv Rossii Group is reviewing the results of the operation of the marketplace and Prodayom online platform launched by the Company at the end of 2019 to deal with suppliers. The turnover of the Group's marketplace for three months made up RUB1 bln. The Company has over 300 suppliers from such commodity segments as children's toys, household goods, cooking ware, small appliances, cosmetics, etc. There are suppliers from Moscow, St. Petersburg, Rostov-on-Don, Kazan, Krasnodar, Omsk and others. The Concept Group (Concept Club women's clothes brand) is a new big partner of Obuv Rossii.
Obuv Rossii has been developing the clothing line since 2014. First, only outer clothing under the own Snow Guard brand was represented in Group's stores – down coats, jackets, and raincoats. Since 2017, the stock has been expanded with jumpers, cardigans, dresses (so-called, mid-layer). Currently, the mid-layer clothing collection includes over 1,000 items.
"In 2019, sales of mid-layer clothing increased by 69.5%. Due to high results, the Company decided to expand the stock in its stores using clothing of other brands," says Olga Danilova, head of the Related Goods Department of Obuv Rossii Group. "Unique design and bright models – that's what attracts in Concept Club's products, therefore we are sure that they will be popular with our customers."
In March, about 250,000 items of the Concept Club company appeared in all stores of the chains that are part of Obuv Rossii Group. The products include lingerie under the Infinity Lingerie brand, as well as home clothing.
"The company has much experience in the fashion industry, and we are glad to offer Obuv Rossii, one of the biggest Russian retailers, a joint project in selling trendy clothing. The range of women's clothing and lingerie developed in own design buro, will be made with the consideration of chain's customers demand," comments Natalia Privalova, Chief Operating Officer of Concept Group.
In November 2019, Obuv Rossii announced the change of its business model: the Company provided up to 50% of its sales areas to outside suppliers, pushes the boundaries of the fashion segment and reformatted its stores to be omnichannel marketplaces. As a result, Obuv Rossii will increase the stock two times due to new product categories. According to the Group's plans, the marketplace development will allow the Company to increase the proceeds of the operating stores by over 30%, to grow conversions by 1.5 times and to smooth seasonality that is typical for the fashion market.
Company profile:
Concept Group LLC is one of the leading Russian companies in the children's, women's clothing and lingerie. The company has been operating on the Russian market for more than ten years. It is successfully developing its corporate retail chain of ACOOLA brands (www.acoolakids.ru), Concept Club (www.conceptclub.ru) and Infinity Lingerie that includes more than 340 stores in over 130 towns.
Obuv Rossii (MOEX: OBUV) is a nationwide footwear company, the first publicly traded company in the Russian fashion retail. Obuv Rossii was established in 2003, it is headquartered in Novosibirsk and has a representative office in Moscow. The main Group business line is the production and sale of footwear and related goods. The Company manages 909[1] stores (175 operate as a franchise) under the brands of Westfalika (a monobrand store of classic footwear), Peshekhod ("Pedestrian") (a multibrand footwear supermarket), Rossita (a store for the whole family), Emilia Estra and Lisette (salons of fashionable footwear), 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, and in doing so became the first publicly listed company within the Russian footwear and fashion market.
In accordance with the audited Financial Statements under the IFRS Group, revenue amounted to RUB 11.55 billion for the full year of 2018, net profit was RUB 1.33 billion, and EBITDA was RUB 2.86 billion.
In December 2019, RAEX (Expert РА) assigned the creditworthiness rating to Obuv Rossii Group at ruBBB+ level, a "stable" forecast.
Website of the Group: www.obuvrus.ru; online stores: www.westfalika.ru, www.westfalika-home.ru, www.emilia-estra.ru, www.rossita.com, www.lisette.me.
[1] As of 18 March 2020.
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