Retail Network

THE GROUP’S KEY COMPETITIVE ADVANTAGE

Stores are the core of the Group’s ecosystem, the basis for the M.Video and Eldorado growth strategy as two leading brands in Russia’s consumer electronics market. Stores are the centre of the Group’s superior customer service, where customers have the opportunity to personally see products and try them out, as well as to ask questions of sales staff.

A diverse retail network is a key competitive advantage in developing M.Video–Eldorado’s online business and the basis for the Group’s transition to the ONE RETAIL model, which provides for the creation of a completely seamless customer experience at all points of the Group’s interaction with online and offline shoppers.

Around 74% of the Group’s customers who make purchases online prefer to pick them up in storesBased on 2018 data.. The opening of each new sales point increases traffic to our online platform in the area where it opens by 10–15%.

Moreover, each store serves to concentrate the Group’s merchandise inventory, supporting online sales in its region and enabling us to reduce delivery delays to consumers, thus increasing profitability from sales.

At all M.Video stores, customers have an opportunity to select and order products according to the ‘endless shelf’ principle. Using the sales assistant’s tablet, which is connected to the m_RTD systemFor more information about m_RTD project see ‘Interview with Group CEO Enrique Fernandez’, customers can gain access to goods not only in the Group’s stores or warehouses but also in suppliers’ warehouses, which greatly expands the product range and is one of the tools used to erase the boundaries between online and offline sales channels.

The Group is striving to ensure full geographic coverage of the Russian market and is planning to grow its retail network to more than 1,100 stores by the end of 2022. Today, our network includes 941 stores, including 480 M.Video stores (including five m_mobile stores) and 461 Eldorado stores in 220 Russian cities. The distance between the easternmost store owned by the Group in Petropavlovsk-Kamchatsky and our westernmost point in Kaliningrad spans more than 7,420 kilometres.