Eldorado reports continued sales growth for 2014
Eldorado, the largest home appliance and electronics retail network in Russia, has continued to deliver positive growth across all segments of its business, and is publishing its business results for the full year 2014 and for the fourth quarter of 2014.
Key highlights for the full year 2014:
- Sales increased by 16.2% to RUB 131.7 billion (including VAT);
- Sales on a comparable basis (like-for-like) increased by 17.8%;
- Online sales increased by 61.6% to RUB 17.8 billion (including VAT);
- Retail outlet sales per square metre of sales area increased by 20.2%;
- Sales per store increased by 15.4%;
- Eight stores were opened, eight shops were closed and total sales area was reduced by 10,000 sq m.
Key highlights for the fourth quarter of 2014:
- Sales amounted to RUB 49.4 billion (including VAT);
- Sales on a comparable basis (like-for-like) increased by 40.9%;
- Online sales increased by 67% to RUB 7.5 billion (including VAT);
- Seven stores were opened and three stores closed.
In addition, in 2014 Eldorado’s share of the Russian online market grew from 7.3% to 9.4%, website traffic increased by 30% and the conversion rate grew by 60%.
Ondřej Frydrych, CEO of Eldorado, commented on the results:
“Despite the closure of some outlets as part of our optimisation programme, this focus on target areas supported an increase sales across all segments of our business in 2014. We demonstrated stable growth in every quarter of the year – as well as experiencing the significant impact of the extraordinary market situation at the end of the year when white goods were especially in demand. Key to our positioning, we maintained our sector leadership in like-for-like sales, the most important performance indicator for retail businesses. Our growth in sales on a comparable basis confirms that we chose the right focus for our strategy: our customers, which is also reflected in considerable increases in our revenue per sq m and revenue per store. Online sales grew by 61.6%, comprising 20% share of turnover during the Christmas peak season and 14% on average for the full year overall, which is an excellent result among the companies in our market segment”.
As at 31 December 2014, Eldorado’s network comprised 374 retail hypermarkets, 31 e-shop points of sale and 14 online hypermarkets. The company’s sales area is 548,584 sq m and the total area is 726,627 sq m.
Eldorado is the largest consumer electronics and domestic appliances retail chain in Russia. Geographically, the company is represented in all regions of the Russian Federation. Eldorado is actively developing a multichannel sales approach and has more than 600 shops all over the country. The company won the Company of the Year 2012 and HR Brand 2013 awards, is a two-time winner of the Number One Brand in Russia awards (2012 and 2014), and a three-time winner of the Consumer Rights and Service Quality Award. Eldorado is part of international investment group PPF, one of the largest investment companies in Central and Eastern Europe. For more details on the company please visit www.eldorado.ru.