“The hybrid business model adopted by M.Video-Eldorado entails a full integration of online sales channels and traditional stores. The Hacking Retail strategy, or Retail Transformation, involves doubling the business volume and achieving a GMV of 1 trillion rubles by 2025 while maintaining high operating margins and comfortable debt loads. This is planned to be achieved by transforming the retailer into a tech company, further scaling OneRetail technologies, which are based on mobile solutions for retailers and customers, and developing analytics-based business processes.”
ALEXANDER IZOSIMOV, GENERAL DIRECTOR OF M.VIDEO-ELDORADO
M.Video-Eldorado is one of the most technologically advanced retailers in Russia. To best meet the needs of its customers, vendors, and partners, the company has developed a hybrid business model based on a combination of online business and mobile technology and has an extensive retail network and a strong logistics infrastructure. Websites, mobile apps, and physical stores within the OneRetail technology stack complement each other to significantly enhance the customer experience. As a result, the Group has an important competitive advantage over exclusively online players and traditional retailers.
PJSC SFI owns 10,4% of the shares of M.Video-Eldorado.
Financial results of M.Video-Eldorado for 2020
RUB 504.8 billion
Total sales
RUB 300.4 billion
Total online sales
RUB 417.9 billion
Revenue
RUB 12.2 billion
Net profit
Development strategy
The main strategic goal of M.Video-Eldorado is to double its business volume and achieve a GMV of 1 trillion rubles by 2025 while maintaining high operating margins and a comfortable debt load. As part of its strategy, the Group plans to increase the share of online sales from 60% to more than 85% of the total sales and significantly increase the number of registered customers and OneRetail clients. At the same time, under the new dividend policy, the Group intends to pay out no less than 100% of its net profit under IFRS 17 in dividends.
As part of its strategy, M.Video-Eldorado intends to work towards three key superobjectives, providing the best customer experience at each stage of the product selection and purchase process:
- covering all customer needs for consumer electronics by offering the widest range of products in the market and increasing the share of innovative and premium products in the range;
- moving all sales to the mobile platform: developing the mobile platform to provide the best customer experience so customers can access all products and services via their smartphones;
- ensuring the maximum number of orders for delivery and pickup in 15 minutes after checkout by introducing further improvements to the infrastructure and logistics platform.
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