Obuv Rossii Announces Record Growth in New Year Sales: by 30%
Novosibirsk, 19 December 2017: Obuv Rossii Group (MOEX: OBUV/ the “Company” and, together with its subsidiaries, “Obuv Rossii” or the “Group”), one of the two largest footwear retailers in Russia and the leader in the mid-price segment of the Russian footwear market, that includes 533 stores in more than 140 cities of Russia and two production facilities, reports about its record growth of New Year sales: in the period from 1 to 18 December, like-for-like sales in Company’s stores increased by 30% as compared with the similar period of 2016.
Main reason for like-for-like sales growth is revival of demand. “December is the month of traditional seasonal and New Year sales, but during the previous years we did not have such a high increase in turnover. This year customers are especially active: like-for-like sales from December 1 to 18 increased by almost a third, the total number of receipts increased by 24% year-on-year, the average ticket increased by 3.32% as compared with the similar period of 2016,” comments Anton Titov, CEO of Obuv Rossii Group. “We have seen revival in demand since the beginning of this season. In general, the whole range of products is in demand now including more expensive fashionable shoes of various colours and classical shoes for festive events.”
The buying activity growth is also connected with the delayed demand effect: shoes are a product with a limited service period of 1.5-2 years, and people who saved money during the crisis and did not buy any shoes in 2015-2016 are gradually returning to stores. “This year became a turning point for the shoe market: it returned to growing in volume terms. We see that the demand on the market is gradually recovering. According to the forecasts of Discovery Research Group for the next five years, the market will grow on average by 6-7% a year,” adds Anton Titov.
In December, shoe models made of colour materials, as well as snowjoggers and casual style shoes are leaders in sales in Obuv Rossii stores. Comfortable shoes are especially popular – monolith sole, low heel, and a good cleat. Observing this tendency, Obuv Rossii increased the share of popular comfortable shoes in its range of products for this season by 10% as compared with the past year. In the spring-summer collection of 2018, the share of fashionable comfortable products will increase by 20% in comparison with the similar season of this year.
 In terms of the number of stores and revenue for the six months of 2017, according to Discovery Research Group