March 24, 2019

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M.Video-Eldorado targets 1100 stores by 2022

by Stuart Wilson, Thursday 14 March 2019

Enrique Fernandez, M.Video-Eldorado group CEO
Enrique Fernandez, M.Video-Eldorado group CEO

Russia-based retail colossus M.Video-Eldorado has reported pro-forma group sales for calendar 2018 of US$6.44 billion – up 17.7% year-on-year. The company’s online sales grew 31% in 2018 to hit US$1.18 billion. M.Video-Eldorado is Russia’s largest consumer electronics (CE) retailer by revenues, according to the company. M.Video-Eldorado ended 2018 with 941 stores in its network with plans to operate a total of 1,100 stores by the end of 2022.

Alexander Tynkovan, M.Video-Eldorado group president, said: “M.Video-Eldorado joint team, in parallel with a large-scale and complex integration process, successfully accomplished all the tasks the two chains were facing in 2018. M.Video showed a record sales growth over the last five years, of 20%, while Eldorado reached 23% sales growth in the fourth quarter of 2018.”

M.Video’s sales rose by 19.6% year-on-year to US$4.27 billion (with VAT) in the full year of 2018. Eldorado sales increased by 14.1% year-on-year to US$2.16 billion (with VAT) in 2018. In the latter part of 2018, Eldorado renewed its brand identity, advertising strategy and store format to attract new customers and improve its top-line performance.

Tynkovan added: “By the end of 2022, the Group plans to operate about 1,100 stores, and [the] MediaMarkt acquisition completed in September 2018 contributes to the successful implementation of our long-term strategy. Within three months of the deal, we managed to open 46 M.Video and Eldorado stores in former MediaMarkt locations, and up to ten more openings are coming in 2019.”

Enrique Fernandez, M.Video-Eldorado group CEO, commented: “Online continues to be a crucial driver of the Russian retail market development, including consumer electronics. Although, over the past year, the share of internet in the group’s total sales rose to 18.3% from 16.5%, approaching European peer benchmarks, M.Video online sales continued to outpace the market by one and a half times.”

Fernandez continued: “Another remarkable trend of the last year we see developing in 2019, is a strong growth of the digital categories – smartphones, laptops, gaming products, and accessories. M.Video has successfully launched standalone shops for digital products, m_mobile, and we plan to increase substantially their number in 2019. We will also continue to develop special digital areas in Eldorado stores.”

In 2018, the group increased its network by 102 stores, out of which 87 stores were opened in the fourth quarter. During the year the group opened 51 M.Video, 46 Eldorado, and 5 m_mobile stores.

DISTREE Russia 2019

The 16th annual DISTREE Russia 2019 takes place from May 29th to May 31st in Moscow. DISTREE Russia is the country’s leading hosted buyer tech channel event spanning routes-to-market for both B2C and B2B markets. Senior executives rom Russia’s top CE, consumer tech and IT retailers, e-tailers and marketplaces attend DISTREE Russia each year.

Vendors, technology suppliers, distributors, resellers, retailers and e-tailers that require more details on DISTREE Russia 2019 can find full event details and contacts at www.distree-russia.com or follow @DISTREE_Russia for event updates.

Channel EMEA is an official Media Partner for DISTREE Russia 2019.

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