M.Video-Eldorado Group creates OneRetail business unit to manage M.Video and Eldorado brands

27.05.2021 14:31

May 27, 2021, Moscow, Russia

PJSC M.video (M.Video-Eldorado Group, the Company, or the Group; MOEX: MVID), Russia’s leading e-commerce and consumer electronics retailer and part of the SAFMAR Group owned by Mikhail Gutseriev, announces that the Board of Directors approved changes to the Group’s corporate structure and the consolidation of all M.Video and Eldorado management functions into a single OneRetail business unit with a focus on further digital transformation of the brands. Dagmara Ivanova, former Managing Director of M.Video, will become Managing Director of the OneRetail business unit from June 1, 2021.

Combining brand management functions will enable the Group to accelerate its digital transformation, focus on the brands’ strategic priorities and unleash the potential of OneRetail technologies at both M.Video and Eldorado while enhancing the speed and quality of management decisions. The Group plans to further differentiate the positioning of each brand. M.Video and Eldorado retail stores and online platforms, as well as customer services, will continue to operate as usual.

The managing director of OneRetail will be responsible for further deployment of the product approach and the digital transformation of the two brands, rapid scaling of OneRetail technologies across the Group’s stores and further strengthening the Company’s competitive advantages. The key focus will be on growing GMV and market share while maintaining operational efficiency, including through better coordination of brand strategies, developing personalised services based on data analytics, and building long-term and effective relationships with customers. OneRetail will also develop its B2B processes and launch new regional stores in different formats. In her new position, Dagmara Ivanova will continue to report to Alexander Izosimov, CEO of M.Video-Eldorado Group.

Sergey Li, Managing Director of Eldorado, has decided to leave the Group to pursue other opportunities.

Alexander Izosimov, CEO of M.Video-Eldorado Group, commented:
“We have already gained strong momentum and are moving towards our strategic goal of doubling GMV to RUB 1 trillion by 2025. We aim to achieve this by transforming our retail business into a technology-driven company and further scaling our OneRetail technologies based on mobile solutions both for stores and customers while also developing business processes that harness data analytics. With a combined OneRetail business unit, we will be able to accelerate decision-making and execution, which is what we need to achieve our strategic goals. I am sure that Dagmara’s experience in developing the mobile platform and customer service at M.Video will enable her to successfully achieve the ambitious goals of our retail digital transformation.

“Over the past years, the Eldorado team under the leadership of Sergey Li has significantly improved the brand's business performance, strengthened its market position and implemented a number of strategic projects. On behalf of the top management team, shareholders and the Board of Directors, I want to say thank you to Sergey and wish him success in his future work.

Dagmara joined the M.Video-Eldorado Group team in 2019 as Deputy Managing Director of M.Video and by January 2020, she led the brand as Managing Director. Ms Ivanova has 20 years of experience in the consumer and retail sector. She served as marketing director at several leading Russian and foreign companies, such as X5 Retail Group, CentrObuv, ORKLA (Norway). Prior to joining M.Video-Eldorado Group, Dagmara was Senior Vice President at Svyaznoy-Euroset (before 2018 – Commercial Director at Svyaznoy).

Dagmara Ivanova, Managing Director of M.Video:
“We will continue to strengthen the competitive position of our brands in the Russian consumer electronics market and will retain our strategic focus on leveraging mobile technology and data analytics to improve customer service. OneRetail will be rolled out to every store across both brands as we continue with the expansion of M.Video or Eldorado as part of the efforts to grow our online business. We are planning to extend our reach to dozens of new locations in the near future, opening 50  new Eldorado 250 stores than originally planned for 2021. B2B will be a further driver in achieving a GMV of RUB 1 trillion. Merging the management teams is an ambitious task that will help us build more robust leadership, accelerate transformation and become stronger, tapping into the synergy of our brands.”

The acquisition of Eldorado in 2018 enabled the Group to combine all back-office functions such as finance, logistics, procurement and commerce, legal and HR while retaining the management teams of the brands. A unified back office helped improve the efficiency of the merged business in a short timeframe, achieve the planned synergetic effects and grow revenue while controlling our costs and maintaining stable EBITDA. In 2020, the Group successfully coped with all the challenges of the pandemic – it became a leader in online retail in Russia, returned to regular dividend payments and completed an SPO.

About the Group

M.Video-Eldorado Group (PJSC M.video) is a leading Russian e-commerce and consumer electronics retailer that unites the M.Video and Eldorado brands. The Group’s GMV exceeded RUB 500 billion including VAT at the end of 2020, and it is currently the only Russian consumer electronics retailer whose shares are publicly traded. The Company’s shares are listed on Moscow Exchange (Ticker: MVID).

As of March 31, 2021, the Group had stores across nearly 300 Russian cities, with 545 and 553 stores under the M.Video and Eldorado brands, respectively. Total floor space was 2,015 thousand square meters.