Detsky Mir and Russian Post Launch a New Distribution Center in Kazan

Moscow, Russia, 3^rd June 2021 – Detsky Mir Group (the “Group”, “Detsky Mir” or the “Company”, MOEX: DSKY), the largest specialized omnichannel children’s goods retailer in Russia and Kazakhstan, announces the launch of its distribution center in Kazan based on Russian Post’s new fulfillment center. The center will support deliveries of ordered goods to the Republics of Tatarstan, Mari El, Chuvashia and Udmurtia, as well as the Kirov, Samara, Orenburg and Ulyanovsk regions.

The new distribution center will locate and pick Detsky Mir online store orders, cutting down delivery times. Residents of the region’s major cities – Kazan, Cheboksary and Ulyanovsk – are now able to receive orders placed on the Detmir.ru online store or via the Detmir mobile app the next day, either by courier delivery or by in-store. Delivery times will be reduced several times over for other cities of the Volga Federal District, such as Naberezhnye Chelny, Nizhnekamsk, Chistopol and Yoshkar-Ola.

With an area of 8,000 square meters and room for up to 200,000 SKUs, the center will be able to process goods of all categories, from diapers and baby rattles to children’s furniture and strollers. The distribution center’s throughput will reach up to 250,000 orders per month.

Russian Post’s fulfillment center in Kazan is now the second regional distribution center of Detsky Mir Group. Thus, the Company’s distribution network includes two federal and two regional distribution centers with a total area of over 175,000 sq. m.

“The launch of this new logistics facility will help us to meet the demands of our growing online channel. We are trialing the 3PL model at our Kazan distribution center; going forward, this will allow us to leverage a more efficient model for rolling out future distribution centers. In 2022, we plan to launch two more regional centers in Saint Petersburg and Novosibirsk,” said Maria Davydova, CEO of Detsky Mir Group.

“We are consistently building out our network of distribution centers across Russia: hot on the heels of centers in Moscow and Novosibirsk, we launched a fulfillment service in Kazan. We plan to launch new fulfillment centers using our own logistics infrastructure very soon in all cities with over a million residents, which will further reduce delivery times,” said Alexey Skatin, Deputy CEO for E-Commerce at Russian Post.

For additional information:

Julia Polikarpova        

Head of Public Relations        

Tel.: +7 495 781 08 08, ext. 2041        

upolikarpova@detmir.ru

Sergey Levitskiy

Head of Investor Relations

Tel.: + 7 495 781 08 08, ext. 2315

slevitskiy@detmir.ru

Detsky Mir Launches Delivery in Kazakhstan

Moscow, Russia, 8 April 2021 – Detsky Mir Group (“Detsky Mir” or the “Company”, MOEX: DSKY), the largest multi-format children’s goods retailer in Russia and Kazakhstan, launches delivery of online orders in 11 cities of Kazakhstan and a next day delivery option in a number of cities.

Standard delivery and next-day delivery are now available for customers on kz.detmir.com online store.

Next-day delivery is available to customers on the kz.detmir.com online store for just KZT 800, regardless of the total order amount. Customers can choose this option if they live in the country’s major cities: Almaty, Nur-Sultan, and Shymkent. It is set to be rolled out to other cities in the medium term.

To bring the project to Kazakhstan, Detsky Mir partnered with Alem TAT, one of the country’s largest courier service providers. The Company’s existing regional network covers 23 cities of Kazakhstan and allows for goods and correspondence to be delivered in the shortest possible timeframe.

When a Detsky Mir customer chooses next-day delivery for their order on the kz.detmir.com online store, Detsky Mir staff will pick the order and pass it to Alem TAT for onward delivery.

To date, customers of the Detsky Mir online store in Kazakhstan can choose from more than 30,000 SKUs.

“The kz.detmir.com online store receives more than 25,000 visits and handles over 2,000 orders every day. Until now, only one delivery option was available to our online customers in Kazakhstan – in-store pickup, which we launched in August 2019. We are currently concentrating on expanding our delivery footprint in Kazakhstan to give customers a more comfortable shopping experience,” said Julia Polikarpova, Head of Public Relations at Detsky Mir Group.

For additional information:

 Julia Polikarpova        

Head of Public Relations        

Tel.: +7 495 781 08 08, ext. 2041        

upolikarpova@detmir.ru

Detsky Mir Launches Delivery through Sberlogistics

Moscow, Russia, 25th March 2021 – Detsky Mir Group (“Detsky Mir” or the “Company”, MOEX: DSKY), the largest multi-format children’s goods retailer in Russia and Kazakhstan, announces a new partnership with SberLogistics, a company under the Sber umbrella.   

Detsky Mir and SberLogistics have signed a partnership agreement, which allows orders placed on the online platform Detmir.ru or in the Detmir mobile app to be picked up in-branch at Sber or from automated SberLogistics parcel lockers, some of which can be accessed 24/7.

SberLogistics operates with its own infrastructure and provides the full range of logistics operations from the first to the last mile, including delivery by courier, to parcel lockers and pickup points. SberLogistics delivery networks includes a total of 26,000 localities and has about 13,000 pickup points across Russia. 

When placing an order online, Detsky Mir customers can choose the option that suits them: SberLogistics pickup point or parcel locker. Delivery costs just RUB 99, and is free for orders over RUB 1,900.  

“Order pickup points and parcel lockers are very popular with shoppers across Russia. We continue to actively broaden our network of pickup points and parcel lockers, and our partnership with SberLogistics will boost the number of our pickup points by almost 20% during the first phase of the project. Currently, customers can choose to receive their order through a range of options when shopping at Detmir.ru or on our mobile app: they can collect it from a Detsky Mir, Zoozavr or Detmir Pickup store, they can visit a partner pickup point or locker, or alternatively, a courier can deliver the order right to their front door. We are delighted with our partnership with SberLogistics, and we are convinced that it will be very popular among our customers,” said Julia Polikarpova, Head of Public Relations at Detsky Mir Group.

“We are excited to work with such a large chain as Detsky Mir. Making fast and comfortable deliveries for our customers is our priority. Our pickup points are located in-branch at Sber, while a good number of our parcel lockers can be accessed at any time of the day, which lets customers collect their delivery at a time that suits them. We currently deliver Detsky Mir orders across Moscow, but looking ahead, we plan to roll out our services to other regions,” said Maria Zaitseva, Deputy CEO for Commerce, SberLogistics.

For additional information:

 Julia Polikarpova        

Head of Public Relations        

Tel.: +7 495 781 08 08, ext. 2041        

upolikarpova@detmir.ru

Sergey Levitskiy

Head of Investor Relations

Tel.: + 7 495 781 08 08, ext. 2315

slevitskiy@detmir.ru

Detsky Mir Unveils a New Flagship Store with Interactive Features and Fantasy Art Installations

Moscow, Russia, 28 December 2020 – Detsky Mir Group (“Detsky Mir” or the “Company”, MOEX: DSKY), the largest specialized omnichannel children’s goods retailer in Russia and Kazakhstan, announces the launch of a new flagship hypermarket in Moscow’s MEGA Teply Stan mall.

With a total area of more than 6,000 sq. m, the flagship store occupies two floors in the new wing of the mall and features over 20,000 SKUs. The hypermarket offers goods for children and future mothers, including newborn products and food, toys for boys and girls, as well as products for the early and school development of children and young adolescents.

The creative concept behind the flagship hypermarket’s design was fully developed by the Detsky Mir team assisted by Fitch, a brand consultancy renowned for its retail environment design innovations.

The new store is designed as a shopping and entertainment space for children and their parents. It boasts over 40 brand areas designed in partnership with the largest Russian and international manufacturers of children’s toys and goods, including LEGO, Disney, Mattel, Hasbro, Gulliver, Simbat, Universal, Warner, as well as several wonderful art installations, including a cave of wonders and a real pirate ship.

Young visitors will have a lot of fun in the new Detsky Mir store, having the opportunity to shoot a Nerf space blaster and take a look at an exhibition of all kinds of guns from the wildly popular brand, or by feeling like a princess in a Disney castle, walking around a LEGO city, and, of course, by having their picture taken with our three-meter tall statue of Zmey Gorynych, a classic Russian fairytale character.

The entertainment space in the flagship hypermarket is filled with a variety of interactive areas featuring virtual and AR attractions. Each little visitor will be able to look at the world through the eyes of an ant, a bee or a fish, explore the four elements (earth, water, air, aether) and bring exciting characters to life on a huge screen.

The Detsky Mir team was particularly focused on the store’s conceptual design. The first floor of the hypermarket is set out just as if you were in nature, with a riot of various greenery, grass, vines and trees, and with a host of toys, board games and building sets dotted about. The second floor, by contrast, is designed in an urban style with unusual shapes, street lights and traffic lights. This is a realm of little fashionistas and products for the youngest. All this variety is adorned by fluffy white clouds and a real sun, which customers can already see from outside as they walk up to the store.

The store also features innovative lighting and sound solutions, placing visitors into an immersive atmosphere with birds singing, waves crashing and seagulls calling on the first floor, and traffic sounds, a tram ringing and an airplane humming in the sky on the second floor. By the way, the plane is no illusion – it is a real model made from LEGO!

Our stores are also stocking centers, so customers will be able to pick up their online orders at the new store within 60 minutes of placing them via the website or mobile app.

“Today we open a beautiful flagship store in MEGA Teply Stan, one of the Moscow region’s iconic malls, where some of the largest international and Russian retail brands are concentrated. We believe that the new store will offer a comfortable shopping experience for parents and a fun time for children. We now operate two flagship hypermarkets – the first, with a total area of 4,000 sq. m, was opened on Novy Arbat in 2019,” said Maria Davydova, CEO of PJSC Detsky Mir.

The new Detsky Mir store is located at MEGA Teply Stan mall, 21st km of Kaluzhskoye Highway, Bld. 1.

For additional information:

Detsky Mir’s Shareholders Approved an Interim Dividends for 9 Months 2020

Moscow, Russia, 21 December 2020 – PJSC Detsky Mir (“Detsky Mir” or the “Company”, MOEX: DSKY), the largest children’s goods omnichannel retailer in Russia, announces the results of its Extraordinary General Meeting of Shareholders (EGM) that took place on 17 December 2020.

The EGM passed the following resolutions by absentee vote:

1. Approve an interim dividend payment of the entire net profit for 9 months 2020 of RUB 3,754,120,000 or RUB 5.08 per ordinary share. Thus, the total amount of paid dividends in 2020 increases by 11.3% year-on-year to RUB 7.8 bn, corresponding to around RUB 10.58 per ordinary share.

2. Set the record date for dividend for 28 December 2020. The Company plans to pay out the indicated dividends by the end of 2020.

At the same time, the EGM decided to retain the previous version of the Company’s charter, as well as number of members of the Board of Directors for 10 people.

For additional information:

The Detsky Mir Group of Companies (MOEX: DSKY) is an omnichannel retailer and the leader in the children’s goods sector in Russia. The Group comprises the Detsky Mir and the Detmir Pickup retail chains, the detmir.ru online store and marketplace, as well as the Zoozavr pet supplies retail chain. The Company operates a retail chain of 805 Detsky Mir stores located in 319 cities in Russia, Kazakhstan and Belarus, 13 Detmir Pickup stores, as well as 14 Zoozavr stores as of 30 November 2020. The total selling space was approximately 872,000 square meters.

Detsky Mir Group’s shareholder structure as of the date of this announcement is as follows: Free float[1] – 100%.  

Websites: detmir.ru, ir.detmir.ru   

([1]) Excluding quasi-treasury shares and shares held by management and directors (0.7% of total shares)

Detsky Mir is Set to Launch its Third Federal Distribution Center in the Urals

Moscow, Russia, 9 December 2020 – Detsky Mir Group (“Detsky Mir” or the “Company”, MOEX: DSKY), the largest specialized omnichannel children’s goods retailer in Russia and Kazakhstan, signed an agreement with PNK Group to construct a new distribution center in PNK Park Berezovsky, a Class A+ industrial park near Yekaterinburg. Knight Frank, an international consultancy firm, advised on the deal. The project is slated for commissioning in Q1 2022.

The new, 63,200 sq. m warehouse facility will be opened at PNK Park Berezovsky, located to the east of Yekaterinburg, 3 km from the Yekaterinburg Ring Road and 16 km from Koltsovo Airport.

PNK Group will employ advanced technology to construct a property with an energy efficiency rating of A+ for Detsky Mir. The developer will boost the building’s energy efficiency by fitting energy-saving continuous heat insulation panels from the basement to the roof. Furthermore, PNK Group builds all its projects to the international fire safety standards developed by FM Global.

The new distribution center is designed to handle 2.4 million SKUs, and will support non-stop next-day delivery for at least 80% of online orders in the Ural Federal District. The launch of the facility will also create over 900 new jobs for local communities. Its well-placed location will reduce transportation costs for delivering goods from the warehouse to the Detsky Mir stores by 30%, and will serve as a foothold for the Company’s expansion into other regions and countries, including Kazakhstan.

Yekaterinburg’s distribution center will mark the fourth joint project between Detsky Mir and PNK Group. Measuring 132,000 sq. m overall, two federal distribution centers at PNK Park Bekasovo in the Naro-Fominsky District of the Moscow Region have already been commissioned, while another distribution center measuring 6,000 sq. m was leased to the Company at PNK Park Rostov-on-Don in the Rostov Region.

“Our logistics network continues to expand at pace, encompassing new projects. The distribution center in Yekaterinburg is an important project on our strategic roadmap, which will help us speed up the deliveries of customers’ online orders from the entire Federal District. The new facility will contribute to the Company’s total sales growth, including online-channel. Equally importantly, the project will meet our sustainability principles of energy efficiency and environmental protection,” stressed Maria Davydova, CEO of PJSC Detsky Mir.

“Detsky Mir Group has already chosen to partner with PNK Group on projects in three key locations: Moscow, Rostov-on-Don and Yekaterinburg. The four deals between our companies cover over 200,000 sq. m in total,” noted Dmitry Pilevin, PNK Development Investment Fund Manager and PNK rental Investment Strategy Manager. “We always strive to meet all of the client’s requirements our projects. We care about making our customers happy by helping them to save on the operating costs of the buildings we construct, which fosters a strong partnership going forward across new locations and projects.”

“In 2020, many national and regional retailers actively started to turn to online sales, and to keep pace with growing sales, they need to bolster their warehousing capacities. We forecast that next year, major players will expand their presence in regional warehousing markets. As for Detsky Mir Group, we fully support its decision to build a new project in the Urals,” added Konstantin Fomichenko, Director of Industrial and Warehouse Property Department at Knight Frank.

For additional information:

Detsky Mir to Launch its Second Regional Distribution Center in Kazan Based on Russian Post’s Fulfillment Service

Moscow, Russia, 30 October 2020 – Detsky Mir Group (the “Group”, “Detsky Mir” or the “Company”, MOEX: DSKY), the largest specialized children’s goods retailer in Russia and Kazakhstan, has signed a preliminary agreement to open a distribution center in Kazan based on Russian Post’s fulfillment center.

Detsky Mir continues to actively build out its logistics network to support the fast and cheap delivery of online orders. The launch of a regional distribution center with an area of 8,000 square meters based at Russian Post’s fulfillment center at Kazan International Airport is planned for Q2 2021. The center will serve the Republics of Tatarstan, Mari El, Chuvashia and Udmurtia, as well as the Kirov, Samara, Orenburg and Ulyanovsk Regions. 

“Our strategic target is to offer next-day delivery on at least 80% of all online orders by building out a robust regional logistics network. Launching the second regional distribution center in Kazan will enable our customers in the Volga Federal District to receive their online orders much faster. Between 2022 and 2024, we are planning to launch two more regional and two new federal distribution centers,” said Maria Davydova, CEO of Detsky Mir Group.

“80% of Russia’s population lives within 1,200 km from Kazan, meaning that orders can be delivered to them in one or two days after being placed. Russian Post is actively developing fulfillment services on the basis of its logistics centers. By the end of the year, the similar hubs will be launched in Novosibirsk, Khabarovsk, and 15 of our logistics centers will be operating in the country by the end of 2021,” said Alexey Skatin, Deputy CEO for E-Commerce at Russian Post.

Detsky Mir Group Announces Full-Scale Launch of Its Own Marketplace

Moscow, Russia, 19th October 2020 – Detsky Mir Group (the “Group”, “Detsky Mir” or the “Company”, MOEX: DSKY), the largest specialized children’s goods retailer in Russia and Kazakhstan, announces the full-scale launch of its own marketplace.

In November 2019, Detsky Mir announced the launch of a pilot version of its marketplace for the Apparel and Footwear category; during the trial period, the marketplace assortment exceeded 50,000 SKUs, taking into account the size range. Almost a year on, the Company has rolled out a marketplace covering all categories, including apparel and footwear, toys and games, products for newborns and pet supplies. In the medium term, the assortment is expected to grow to 2.4 million SKUs. The Company has already established long-term partnerships with a number of local and foreign brands, including Acoola, Gulliver, Kapika, Kerry and Kotofey.

Detsky Mir offers attractive terms to potential merchant partners who are looking for third-party logistics (3PL) services, including access to the Company’s existing logistics infrastructure for a competitive, fixed commission. A personal account functionality has been added to the online platform, offering all necessary features – assortment creation and management, analytical reporting, price management, etc. The Company plans to further expand the marketplace functionality by adding a promotion management system, financial reporting and operational analytics.

At the same time, the marketplace will provide customers with the unique opportunity to purchase Russian and foreign brands from across various categories – all in one place. Orders can be received at your convenience – customers can use either the in-store pickup option or courier delivery. All orders over RUB 1,900 will be delivered free of charge. Detsky Mir’s loyalty program, with all its benefits, is fully integrated into the marketplace service.

Merchants willing to market their products via the Detsky Mir marketplace are invited to register by clicking on the following link: https://partner.detmir.market/, complete a counterparty card and fill in a questionnaire with the required information.

“The width of choice is an important competitive advantage for any online store, so the full-scale launch of our marketplace is a key area of our strategy. We see leveraging our existing logistics and retail infrastructure as well as our low marketing and operating costs as an opportunity to deliver a more attractive marketplace than those of our competitors. At this initial stage, we will focus on all children’s goods categories and pet supplies. Going forward, we plan to trial out related categories beyond the children’s assortment, but are remaining anchored to the brand’s overall focus,” said Maria Davydova, CEO of PJSC Detsky Mir.

For additional information:

Detsky Mir to Accept Payments via the Faster Payments System (FPS) Across Its Retail Stores

Moscow, Russia, 1 October 2020 – Detsky Mir Group (“Detsky Mir” or the “Company”, MOEX: DSKY), the largest specialized children’s goods retailer in Russia and Kazakhstan, will accept payments via the Faster Payments System (FPS) across its retail stores. The technical side will be handled by Russian Standard Bank.

Detsky Mir customers will soon be able to pay for their purchases using a QR code via the Faster Payments System (FPS) across all of Detsky Mir retail stores in Russia. The process is as follows: once the FPS service is selected as a form of payment, the shopper uses their smartphone to scan the QR code through the mobile app of their respective bank and confirm the transaction. The payer’s bank needs to be member of the FPS, and its mobile app needs to support QR-based payments.

The upcoming implementation phase will see the launch of this technology online at www.detmir.ru.

“QR payments are still relatively new for the Russian retail industry. The Bank of Russia mooted the use of C2B payments via the Faster Payments System last year. The introduction of an innovative payment tool will improve the purchase journey for consumers and make cashless payments more attractive for our customers. I am convinced that this service will be a highly popular payment method,” said Aleksey Brylyakov, Head of Corporate Finance at Detsky Mir Group.

“This new service using QR codes to make payments via the FPS will substantially reduce acquiring costs for the retailer, while lower costs always have a positive impact on the value proposition for end consumers,” stressed Inna Yemelyanova, Head of Acquiring at Russian Standard Bank.

“Using the FPS to pay for goods and services is gaining traction among the system’s users, with C2B payments constantly growing across the board. Now that the new cashless payment method is being made available for Detsky Mir customers too, they will benefit from its convenience and security,” noted Dmitry Kolesnikov, Director for Innovative Services Development at the National Payment Card System (the operational payment and clearing center of FPS).

For additional information:

  Julia Polikarpova

  Head of Public Relations

  Tel.: +7 495 781 08 08, ext. 2041

 upolikarpova@detmir.ru

Detsky Mir Launches Its First Regional Distribution Center in the South of Russia

Moscow, Russia, 27 July 2020 – Detsky Mir Group (“Detsky Mir” or the “Company”, MOEX: DSKY), the largest specialized children’s goods retailer in Russia and Kazakhstan, announces the launch of its first regional distribution center in the Class A+ industrial PNK Park Rostov-on-Don developed by PNK Group.

With a combined area of 35,000 square meters, the new warehouse facility enjoys a perfect location close to the M-4 Don highway, 7 km away from the city of Rostov-on-Don and 20 km from Platov Airport. Detsky Mir Group has leased 6,000 square meters of warehousing space for seven years with the option to expand. The project’s capex totals around RUB 100 million.

The facility fully meets modern requirements for similar terminals. Its design throughput capacity exceeding 100,000 SKUs, the new regional distribution center will ensure fast and smooth delivery of online orders across the Southern Federal District. The launch of the new warehouse will also create over 150 new jobs within nearby local communities.

For Detsky Mir, this joint project with PNK Group is the third key logistics infrastructure hub. Previously, the Company commissioned two distribution centers totaling 132,000 square meters at PNK Park Bekasovo in the Naro-Fominsk District of the Moscow Region.

“This distribution center is a strategically significant project enabling next-day deliveries for our customers across an entire federal district. I am convinced that the project will meet our expectations and we will continue the expansion of similar logistics hubs across Russia,” noted Maria Davydova, CEO of Detsky Mir Group.

“We have a long-standing partnership with Detsky Mir Group: we built their first distribution center at PNK Park Bekasovo in 2015. The Rostov-on-Don project is our third joint initiative. As a result, our partner currently owns or leases 138,000 square meters of industrial space from PNK Group,” said Dmitry Pilevin, PNK Development Investment Fund Manager. “Rostov-on-Don is a vibrant region. Our existing and potential customers, particularly those in e-commerce, have shown a strong interest in our park. Currently, we can offer them both vacant space in a ready-to-use building and land for development.”

For additional information: