M.Video–Eldorado at a Glance

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M.Video-Eldorado Group is Russia's leading e-commerce and consumer electronics retailer. In 2020, the Group's gross merchandise value (GMV) was over RUB 500 billion. M.Video-Eldorado is among the world's Top 10 electronics retailers by sales and we are rapidly growing our online business: total online sales (TOS) account for around 60% of the Group's GMV, making us one of the largest e-commerce players in Russia.

M.Video-Eldorado Group is also one of the most technologically advanced retailers in Russia. We are doing our best to satisfy the needs of our customers, vendors, and partners as we develop our hybrid business model leveraging online operations and mobile technologies along with an extensive offline retail network and robust logistics infrastructure. Our websites, mobile apps, and brick-and-mortar stores are integrated by our OneRetail technology stack and complement each other to reinforce a positive customer experience. This hybrid approach gives us an important competitive advantage over retailers that operate exclusively online or offline.

Our business relies on two leading retail brands, M.Video and Eldorado, each of which boasts 100% brand awareness in the Russian market. The Group has over 1,000 stores across 270 locations in Russia, from Kaliningrad to Kamchatka. Our Two Brands strategy helps to maximise customer outreach while also enabling greater agility in responding to market changes and boosting efficient growth of the retail network. The online infrastructure and offline store networks of both brands operate using a single IT system and a shared back office. To enable this shared approach, we aim to maximise business process digitalisation at customer contact points and all business functions including logistics, marketing, and assortment management.

M.Video-Eldorado Group has also been recognised as Russia's top retail employer by hh.ru, the leading online recruitment platform in Russia and the CIS.

 

OneRetail Platform

Owing to both M&A activity and organic growth, the Group has been able to ensure strong earnings growth momentum and in 2019 ranked among the 10 largest publicly traded retailers in its segment globally, with revenue of USD 5.6 billion.

Technology-driven growth and value creation strategy

The Group's primary strategic target is to double its GMV to RUB 1 trillion by 2025 while maintaining a healthy operating margin and comfortable leverage. As part of our strategy, we intend to expand the share of total online sales from 60% to over 85%, boost the number of authorised and OneRetail customers, and achieve several other financial targets (see M.Video-Eldorado Group Strategy Day for more details). In addition, in line with the new dividend policy, the Group plans to distribute no less than 100% of its net profit under IAS 17 as dividends.

To implement our strategy, we will focus on achieving the following three overarching goals while offering the best customer experience throughout the customer journey:

  • fully satisfy our customers’ needs in consumer electronics by creating the widest product offering in the market and expanding the share of innovative and premium products;
  • moving all sales to the mobile platform by developing it in a way that enables the best customer experience and offers full access to all our products and services via a mobile device;
  • maximise the number of orders available for shipment and self-pickup in just 15 minutes after an order has been placed by further developing our infrastructure and logistics platform.
Integrated retail platform, shared logistics, and two brands

The Group's primary strategic target is to double its GMV to RUB 1 trillion by 2025 while maintaining a healthy operating margin and comfortable leverage. As part of our strategy, we intend to expand the share of total online sales from 60% to over 85%, boost the number of authorised and OneRetail customers, and achieve several other financial targets (see M.Video-Eldorado Group Strategy Day for more details). In addition, in line with the new dividend policy, the Group plans to distribute no less than 100% of its net profit under IAS 17 as dividends.

Our strong fulfilment process relies on a well-developed retail and logistics infrastructure that comprises over 1,000 stores, 9 distribution centres, and 58 multi-format outlets, with a total storage area of nearly 1 million sq m. Since 1993, we have invested over RUB 150 billion in our retail network and logistics, putting us years ahead of leading marketplaces in terms of logistics and last-mile delivery capabilities.

The distance between our easternmost and westernmost stores in Petropavlovsk-Kamchatsky and Kaliningrad, respectively, is over 7,420 km. The Group's strong online platform enables 100% online coverage across its footprint. Our stores serve as an extension of the online shopping experience and a place to showcase products and innovations for both store visitors and online users (through video consultations). On top of that, the retail network accommodates 46% of the Groups inventories. They are distributed to stores based on predictive analytics, which enables both the  fastest access in the market to popular products and efficient stock management. The high density of our stores helps us to successfully develop express delivery and self-pickup services. With that in mind, we view the retail network expansion as a key way to boosting and supporting our online sales. The network now boasts 55,000 partner outlets and 60 partnerships with delivery services including ridesharing companies.

The Group intends to continuously improve the quality of its delivery and self-pickup services, driven by several key strategic goals. In particular, we plan to increase the share of products ready for pickup within 15 minutes from 34% to over 50% of our GMV.