2020 October 27, 10:00
M.Video-Eldorado Group 3Q 2020 Net Sales Increase 25%, Online Sales Up by Almost 2.5x
27 October 2020, Moscow, Russia. PJSC M.Video (M.Video-Eldorado Group, the Company, or the Group; MOEX: MVID), Russia’s largest consumer electronics retailer by revenue and part of SAFMAR Group owned by Mikhail Gutseriev, releases its combined unaudited net sales for the third quarter and nine months ended 30 September 2020 and publishes its business overview and key events in 3Q 2020 and after the reporting date.
3Q 2020 highlights
9M 2020 highlights
Key factors behind 3Q 2020 results
- refocus marketing, operating and retail operations to enable mobile- and web-centric customer journey to ensure seamless experience;
- improved logistics and fulﬁlment, including express delivery using taxi providers;
- efficient stock management and expansion of the range of household appliances, electronics, and related categories using a marketplace model;
- increase in traffic and conversion of Group’s online platforms, as well as enhancement of mobile app capabilities;
- proactive use of retail chain to ensure accessibility and shortest delivery times of all online orders.
- deferred demand for a number of categories of household appliances and electronics following the restrictions introduced in spring 2020;
- ongoing strong demand for home office equipment as most office employees continued to work remotely;
- emerging demand for durable household goods (driven by the trend for working and studying from home);
- final lifting of the most stringent restrictions for non-food retailers and reopening of most shopping centres and stores across the country.
- sharp drop in outbound tourism, which allowed to partly shift household spending to home appliances, electronics and other durable goods.
Key events in 3Q 2020
Alexander Izosimov, CEO of M.Video-Eldorado Group, commented:
‘Our strong performance in 3Q 2020 and the share of total online sales exceeding 50% attest to the fact that M.Video-Eldorado has established itself as an online business whose dynamic and efficient growth is supported by an extensive fulfilment network based on retail stores. The Company has successfully leveraged its experience during the crisis to accelerate the implementation of a new off-channel One Retail model. It has adjusted its operations to meet all post-pandemic consumer expectations, from convenient mobile services and contactless payment to express delivery. These internal factors have already secured a more than 25% growth in 3Q and will certainly continue to contribute to our performance over the long term, meaning we expect high revenue growth both in Q4 and for FY 2020.
Positive sales dynamics in 3Q and 9M 2020 are a function of the general trends in the home appliances and electronics market, but they also speak to the Group's strengths as a major player in the segment, which are quick access to goods, high-demand assortment, a wide range of services, and personalised offers. By leveraging these, we are able to steadily increase our market share and entrench ourselves as one of the leading Russian e-commerce players.’
Business overview and key events after the reporting date
[i] Total online sales of M.Video-Eldorado Group in line with its ONE RETAIL strategy include all sales to authorised customers through various channels: home delivery, in-store pick-up, and sales to clients checked-in through shop assistants’ mobile devices connected to the Real-Time Dealing platform (RTD). RTD is currently available in M.Video stores only.