Detsky Mir Tests New Format of Detmir.ru Store

Moscow, 13 December 2019 – Detsky Mir PJSC (“Detsky Mir” or “the Company”, MOEX: DSKY), Russia’s largest specialized children’s goods retailer, announces the launching of active testing of the new format of detmir.ru store.

In line with its omnichannel business model aimed at accelerating the consolidation of the children’s goods market, the Company will introduce an active pilot phase of a new “microstore” format detmir.ru that combines an offline store and a pick-up point.  

The format utilizes a selling space of roughly 130-170 square meters primarily in cities with a population of 10,000 to 40,000 inhabitants, as well as specific locations that are incomparable with Detsky Mir’s standard formats. The total market capacity of such locations is now estimated at 2,000 detmir.ru stores.

To date, the Company opened two “microstores” in the Moscow region, planning to have at least five of them by the end of Q1 2020. Based on the results of H1 2020, the Company will make a decision of full-scale roll out. The pilot stores will experiment with several product mixes as well as delivery speed of online orders.

Vladimir Chirakhov, PJSC Detsky Mir Chief Executive Officer, said:

“Our customers are increasingly shopping at the webstore www.detmir.ru, as the online segment’s share in the company’s total revenue in November rose to 17.7%. About 90% of the online orders are picked up at retail stores, which confirms a high customer demand for this service. At the same time, we decided to develop direct deliveries from stores as a separate service, leveraging our expansive retail chain. Now our customers in large cities in Russia can receive their orders within a few hours after making an online purchase on our website. All this testifies to the strong efficiency of our omnichannel business model. We expect that the new format will allow us to increase presence in smaller communities, while also refining our delivery performance”.

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For additional information:

Detsky Mir Group (MOEX: DSKY) is a multi-format retailer and Russia’s largest specialized children’s goods retailer. The Group comprises the Detsky Mir retail chain, and the ELC (Early Learning Centre in Russia) and the ABC retail chains, as well as the Zoozavr pet supplies retail chain. The company operates a network of 710 Detsky Mir stores located in 266 cities in Russia, Kazakhstan and Belarus, as well as 48 ELC, 14 ABC and eight Zoozavr stores as of 30 September 2019. Total selling space was approximately 794,000 square meters.

Detsky Mir Group’s shareholder structure as of the date of this announcement is as follows: PJSC Sistema[1]  – 33.38%, Russia-China Investment Fund (RCIF) [2] – 9.0%, free-float – 57.62%.

Lear more at www.detmir.ru, corp.detmir.ru, elc-russia.ru.

(1) Sistema PJSFC is a publicly-traded diversified Russian holding company serving over 150 million customers in the sectors of telecommunications, children’s goods retail, paper and packaging, healthcare services, agriculture, high technology, banking, real estate, pharmaceuticals and hospitality.

(2) RCIF, an equity fund established by the Russian Direct Investment Fund (RDIF) and China Investment Corporation (CIC), holds its stake in PJSC Detsky Mir through its funds: FLOETTE HOLDINGS LIMITED and EXARZO HOLDINGS LIMITED.