Detsky Mir Group is a multi-format retailer and Russia’s largest specialized children’s goods retailer. The Group comprises the Detsky Mir retail chain, ELC (Early Learning Centre in Russia) and the ABC retail chains, as well as the Zoozavr pet supplies retail chain. The brand of Detsky Mir turned 71 in 2018, and it’s one of the most identifiable brands among children's goods retail chains.
PJSC Detsky Mir owns the “Detsky Mir” trademark and manages all stores within its retail network. Detsky Mir Group is also developing a chain of ELC stores in Russia. To date, the ELC retail chain is represented by stores in Moscow and 43 Russian cities. As of 2018, the total number of Detsky Mir Group stores was 743, comprising 673 Detsky Mir stores and 66 ELC stores in 252 Russian and Kazakhstani cities, while the total selling space reached 768 thousand square meters.
A typical supermarket within the Detsky Mir retail network features around 20–30 thousand SKUs of children’s goods priced in the medium range: toys, apparel and footwear, products for newborns, stationery, art and craft sets, recreational goods, car seats, and furniture. The Company’s target audience is medium-income families, representing the majority of shopping mall visitors.
In 2018, Detsky Mir achieved impressive results in terms of business growth. Group revenue increased 14.3% in 2018 to RUB 110.9 billion, from RUB 97.0 billion in 2017. One hundred new stores were opened. In addition, Detsky Mir continued active regional and international expansion. In 2018, 33 debut stores opened in cities of Russia and Kazakhstan that are new for the Company. Detsky Mir entered a new region — the Far East — with stores opened in Blagoveshchensk, Vladivostok and Khabarovsk.
Kazakhstan remains a promising market for the international expansion of the Detsky Mir retail chain. In 2018, the Company expanded its retail chain in Kazakhstan by eight supermarkets and almost doubled revenue, while growth of like-for-like sales in tenge was 30%. Detsky Mir has a total of 30 stores in 15 biggest cities of the Republic of Kazakhstan.
In addition to retail stores, Detsky Mir Group offers the full range of its products for purchase online. The e-commerce business segment was launched in 2011 and still remains the fastest growing sales channel. The online store had more than 178m visits and fulfilled over 5.1m online orders in 2018. The online channel’s revenue doubled in 2018 and amounted to RUB 8.8 billion.
One of the key drivers of revenue growth in 2018 was the promotion and expansion of the In-Store Pickup service. Now customers can pick up orders at a Detsky Mir store within 60 minutes of placing the order.
At the end of 2018, the Company opened four pilot stores of the Zoozavr chain — a new business line for Detsky Mir. The market of pet products is promising because of its volumes, expected growth rates and high level of fragmentation, as well as the opportunities it offers for the management to leverage their experience gained in the children’s goods market. The Company expects to open six more stores by the end of 2019. The decision regarding further development of this chain will be based on the results of the pilot stores.
The key strategic goal of Detsky Mir is consolidation of the children’s goods market in Russia and Kazakhstan. This will be achieved by expanding the chain, developing omni-channel sales and offering affordable and diverse products, including private labels.