Our Strategy

The Company’s management confirms its store opening guidance, with at least 300 stores in the Detsky Mir chain’s traditional format on the horizon in Russia, Kazakhstan and Belarus. The Group also plans to open 800 Detmir Pickup stores – our new compact store format – along with 500 Zoozavr pet supplies stores. 

Detsky Mir expects to maintain double-digit growth in total sales in the medium term by developing its omnichannel business model, with the share of online sales reaching 45% in the children’s goods category and 30% in the pet supplies category. The Company’s goal is leadership in both markets.

Detsky Mir’s strategic priority is to offer an affordable and wide product assortment, which will be ensured in part by a focus on private labels and the full-scale launch of our own marketplace. Within 3 to 5 years, the product assortment in the children’s goods segment is expected to grow from 150 thousand to 2.4 million SKUs.

Detsky Mir is constantly improving its customer experience across all sales channels, with a medium-term target of achieving an overall NPS score of 70% and gaining user experience leadership over online peers. Furthermore, the Company will consider entering the market for digital services and other non-children’s product categories.  

The Company will continue to build out its logistics network to support the fast and cheap delivery of online orders. Between 2021 and 2024, Detsky Mir expects to launch five new distribution centers: three leased regional centers and two Company-owned, federal-level centers. While the level of investment required for each federal distribution center should be no more than RUB 2.5 bn, CAPEX per regional warehouse will amount to about RUB 100 m.  On top of this, Detsky Mir’s total IT infrastructure CAPEX is not expected to exceed RUB 4 bn in the medium term. 

The Group will continue to improve its operational efficiency to maintain its double-digit adjusted EBITDA margin(excluding the impact of IFRS 16 “Leases”) in the medium term.

The Company expects to confirm its dividend recommendation of 100% of net profit under Russian Accounting Standards (RAS). At the same time, Detsky Mir expects its financial year-end net debt/adjusted EBITDA ratio to stay below 2x throughout the entire forecast period.

Contacts

Sergey Levitsky
Head of Investor Relations
+7 495 781-08-08 ext. 2315