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: