Russian retailer Detsky Mir's online sales increased 1.8 times in the first quarter

From January to the end of March this year, Detsky Mir's total sales increased by 15.6% to 39.6 billion rubles (about 3.42 billion yuan). Among them, the total online sales increased by 1.8 times to 10.9 billion rubles (about 9.41 billion yuan). At the same time, the share of online sales in the company's total sales increased by 1.6 times, accounting for 28.6%.

According to Detsky Mir, mobile apps have become an important source of orders for the company, with 74% of orders placed through its mobile app. The company's product range has increased 2.8 times to 321,000 SKUs.

Detsky Mir's own brands and imported goods performed best, with sales of these products in Russia increasing by 18.3% in the first quarter of this year and accounting for 40.4% of total sales.

According to Detsky Mir, membership consumption is the company's mainstay, with membership card holders accounting for 85.9% of the company's total sales in Russia. The total number of Detsky Mir's membership card holders increased by 11.2% to 27.5 million. Among them, the number of active members reached 10.8 million.

As of now, Detsky Mir has 880 stores in 350 cities and regions in Russia, Kazakhstan and Belarus (up 4% year-on-year). In the first quarter, Detsky Mir opened 12 new stores and the group's retail store area increased by 6.5%.

Maria Davydova, General Manager of Detsky Mir, said: "In the first quarter of 2021, we once again accelerated the growth rate of our business and consolidated the children's products market in all countries where the Group operates. Our digitalization policy, improvement of customer experience, development of product range and logistics have proven to be strategically correct and have made a significant contribution to the company's high performance."

In addition to toys, Detsky Mir also achieved good sales results in clothing and footwear. Data showed that the sales of toys accounted for 32.3% of the total turnover, up 1.4 percentage points year-on-year, while the sales of clothing and footwear accounted for 25.5%, up 1.6 percentage points year-on-year. At the same time, the latter's sales in online channels increased by 2.3 times.

Detsky Mir only launched its online platform in early October 2020, so it seems that the move to online is the right one. According to data from the first quarter, online sales already accounted for nearly one-third of total sales.

Russia