Translated by

Eldorado

Company

Trade
Since 1994
Russia
Central Federal District of the Russian Federation
Moscow
125493, Smolnaya Street, 14, BC Smolny.


Top managers:
Gutseriev Said
Li Sergey
width=200px

Owners:
Safmar


300px

Performance Indicators

2016

As of December 31, 2016 the Eldorado network includes 430 retail hypermarkets. The floor space makes 605,289 sq.m, total area – 779,206, 11 sq.m.

  • Sales increased by 11.0%, having made 130 billion rubles (including VAT);
  • Comparable sales (like-for-like) increased by 13.9%;
  • Online sales grew by 37.7%, having reached 23 billion rubles (including VAT);
  • Comparable online sales grew by 40.9%;
  • Revenue of retail stores per square meter of the floor space increased by 1.2%;
  • Openly 33 shops, the floor space increased by 19,106.5 sq.m, total area increased by 21,392.62 sq.m.

For 2016 traffic on the website www.eldorado.ru grew by 24% of rather same period, conversion of the website – for 26%. The company continued active development of the online channel, online sales reached 18.4% of a total turnover of the company.

History

2019: Updating of online store and transition to omnichannel model

On January 29, 2019 the Eldorado company reported that it increased a website eldorado.ru fuktsionalnost. The made changes reflect brand philosophy: simply, profitable, nearby. Among key updates: "smart" search, increase in speed of loading of pages by one and a half times, improvement of the interface, fast order placement, emergence of blocks with the personalized offers and popular goods.

According to the company, in the second half of 2018 of Eldorado completely passed to omnichannel model, having offered buyers the uniform range, the prices and service upon purchases online and for January, 2019 in more than 460 shops. Sales of Eldorado grew by 14.1% and reached 141.6 billion rubles in 2018, online sales reached 24.5 billion rubles. In the fourth quarter 2018 of the loudspeaker of online sales Eldorado increased to 23% in comparison with the same period of 2017 thanks to improvement of functionality of the website and growth of conversion.

After updating of a brand and retail formats the website of Eldorado also underwent significant changes both in terms of functionality, and in terms of design, having received more clear and user-friendly interface. The appearance of the commodity directory and also navigation on categories was completely updated. In the heading of the website the logo and a slogan "To people appeared it is profitable", sections of Action, Basket and "Goods of day" became more noticeable. As a result of updates visit of the section of Action increased by two and a half times. Also colors in a design of the website changed: bright lime was added to red and white color, usual for buyers. According to the results of the first weeks of work of the updated website conversion in purchases thanks to "smart" search grew by 10%, and the indicator of failures decreased by 5%, buyers began to browse more goods, the average duration of a session increased by 7% in comparison with the same period of last year.

«
In implementation of an omnichannel business model a special role is played by online store. Even more often the way of the modern buyer begins with the choice of the equipment online. The Internet channel with growth of mobile traffic is the driver of all industry therefore we made every effort in order that the website became more clear to buyers through the whole country. By preparation of upgrade strategy of eldorado.ru we and our developer partners were faced by a task to make focus on personification, and further development we will continue just in this direction.

Anatoly Mokhov, director of e-commerce of Eldorado
»

In respect of functionality updating affected an upper part of the website where sections with the main offers allowing buyers to make the most profitable and pleasant purchase were taken out: the rewards program, a guarantee of the best price, fast and careful delivery, an opportunity to issue payment by installments online in one minute.

The goods recommended to the buyer were selected in the separate block, and the updated search working at a basis of machine learning issues relevant goods taking into account preferences and activity of the visitor of online store. Besides, in the separate block popular goods which received the greatest number of positive responses of buyers are taken out.

Optimization of the version for mobile devices as for January, 2019 about 55% of sessions for eldorado.ru are the share of smartphones and tablets became one of key tasks within change of the website. The adaptive version of the website opens one and a half times quicker, became simpler for perception and it is more convenient for search of goods or purchase in one click on all popular browsers.

2018

More than 220 thousand pieces of equipment are transferred to utilization to Eldorado

The retail network Eldorado summed up on March 14, 2019 the results of the flagman stock "Utilization" for 2018. In exchange for a discount up to 25% buyers gave 220 thousand units of the outdate or become useless equipment more than 15.5 thousand cubic meters. In total the number of the equipment received since 2010 was close to 3.5 million pieces.

At the end of 2018 the program enjoyed the greatest popularity at residents of Moscow, Omsk, Yekaterinburg, Novosibirsk and Nizhny Novgorod. Buyers of Eldorado most often gave mobile phones, TVs, teapots, washers and irons to utilization.

On the amount of the handed-over equipment in top-5 refrigerators, washers, TVs, plates and vacuum cleaners entered. Export of major appliances is performed from clients by free of charge service specialists of the company. And clients can bring the melkogabaritny equipment in Eldorado shops independently.

In 2018 the network expanded the list of the equipment: Eldorado began to take the become useless accessories and the fulfilled jet cartridges for recycling.

As explained in the retailer, according to the existing legislative arrangements the specialized partner companies are engaged in utilization of the assembled equipment.

«
The technology became an integral part of our life, it does it more comfortable, and it is more productive than ourselves. However with consumption growth we should not forget that already otsluzhivavshy devices require the correct utilization and processing. It is easy to care for the nature, and it is possible to begin with simple things, having brought old devices in our nearest shop. Especially, in exchange we allow a discount for commission of new purchase. Since 2010, our buyers handed over already about 3.5 million units of equipment which was in the use. We will continue to expand the flagman program and to popularize the idea of responsible consumption — the retail sales director of Eldorado company Dmitry Sukhanov.
»

Failure from plastic packets

On December 14, 2018 the Eldorado company announced the refusal from plastic packets for benefit of FSC certified paper for reduction of use of plastic packaging, harmful to the nature, and promoting of the principles of responsible and conscious consumption. For December, 2018 packets appeared more than in 400 shops of network located in 200 cities of the Russian Federation. About 1.5 million packets which remained in retail from plastic are withdrawn from sale and will be utilized at the expense of the company.

According to the company, biodegradable paper packets of three sizes maintain the maximum weight to 7, 12 or 18 kilograms, are manufactured in Russia from secondary raw materials — waste of paper and cardboard production thanks to what decay for short term and can be processed into other products. The sign FSC on packaging means that her producer underwent the certified procedure and audit, and guarantee that by production ecological requirements were observed and the minimum harm is done to the nature and the interests of locals were most considered.

Eldorado adheres to responsible business and implements a number of the programs directed to environment protection and quality improvement of life of society. The stock "Utilization" which allows to draw attention to eco-friendly processing of the equipment capable which was in the use upon termination of the period of operation is key to do considerable harm to ecology. Since 2010 more than 3.5 million devices, in an effect processed according to all necessary requirements by the specialized companies are received from buyers.

«
The total failure from sale of plastic packets with their replacement by paper will allow to reduce hit to the environment of hundreds of kilograms of unutilized waste and is for us an important step on promoting of careful attitude to the nature and use of its resources. The business community should solve important environmental problems together with consumers as the normal plastic packet for December, 2018 "lives" on average 20-30 minutes, and decays centuries, influencing not only the surrounding nature, but also health of people. It is sure, buyers will estimate our initiative and will begin to pay more attention to conscious consumption of plastic.

Sergey Li, managing director of Eldorado company
»

The M of Video Eldorado group is a founder of "Beautiful Children in the Beautiful World" fund which implements two charity programs – "Beautiful children" and "The beautiful world". For December, 2018 a problem of the first – organizational and financial aid in treatment of children with problems in maxillofacial area. The Beautiful World program is directed to preserving of the nature of Russia. Besides, in M.Video and Eldorado refused glow lamps according to shops, carry regularly out Hour of Earth and develop the volunteer movement among employees within which annually thousands of people through the whole country take personal part in actions for landing of the woods and to collecting of garbage.

Opening of shops in the Eldorado 600 format

On November 09, 2018 reported to M.Video that the retail network Eldorado (M.Video — Eldorado Group) opens shops in the updated concept: five of 1000-1200 sq.m, three more of 600 sq.m. Two retail objects in the concept of shop warehouse appeared in Moscow, on one in Ivanovo, Voronezh, Arkhangelsk, Rostov-on-Don and Krasnodar. The provided format distinguishes minimalism in external and internal design, the increased area of trade space, the updated identity and colors, growth of the provided range mainly at the expense of the selected digital-zone with the open calculation. At the end of 2018 Eldorado is going to start 25 updated shops.

Eldorado becomes closer to buyers due to emergence of convenient locations to the floor space than 600 sq.m where more than 2,000 names of the most popular models of home appliances and electronics are collected. In addition to advantageous commodity offers and regular promotion actions the qualified services are available to clients.

«
Our regional expansion is directed to distribution of the updated philosophy of the company for which the principles are key: simply, profitable, nearby. Within repositioning we made changes to all brand features, beginning from a logo and a design of shop before creation of advertizing campaigns. Besides, we expanded the range of digital equipment at the affordable prices as this segment steadily shows growth. Implementation of the Eldorado 600 format will allow to expand presence in priority regions where we will be able to increase turnover and an average bill, having reduced costs for opening. Reaches other level also development of omnichannel approach.
Dmitry Sukhanov, retail sales director of Eldorado
»

Opening of competence center in the field of Data Science

The M of Video Eldorado group, the Russian retail network of electronics and home appliances entering into PFG "Safmar" of Mikhail Gutseriev announced on August 13, 2018 creation of competence center in the field of analytics of data and machine learning — Digital Retail Data Science Centre. A main objective of creation of the center, told in the company, search of the additional points of growth of business based on data analysis and transition to the automated "smart" services and business processes is. By estimates "M. of Video Eldorado", the technologies based on data analysis will allow the company to cut down operating expenses and will be able to bring up to 5 billion rubles of an additional turnover in the medium term. Read more here.

2016

The Eldorado network is sold to Safmar financial group

On December 9, 2016 the press service of Eldorado company announced sale of 100% of stocks of network by PPF Group N.V. and EMMA Capital companies to the group of investors connected with Safmar financial group.

FAS approved the transaction on sale to Eldorado network. The parties agreed not to disclose its condition.

«
The transaction was implemented according to the development plan for Eldorado, at the same time according to the arrangement top management and the management will continue to work in the company. Business indicators in 9 months 2016 validate the selected direction which in the short term will remain invariable that will allow to strengthen leader positions of the retailer in the market.

Mikhail Nikitin, CEO of Eldorado company
»

Earlier the Eldorado company for 20% belonged to the Czech company Emma Capital of the businessman Jiri Shmeyts, for 80% — to the Czech investment group PPF which beneficiary is Pyotr Kellner.

The Eldorado network is offered for sale

The Safmar group (the former BIN) conducts negotiations on purchase of the retailer of home appliances and electronics (BTIE) of Eldorado, told RBC a source in one of investment funds. Pavel Zuna is the representative of the co-owner of Eldorado of Emma Capital company (owns 20% of Eldorado) — told RBC that "multilateral" negotiations on sale of Eldorado are conducted. He did not specify parts of the transaction and names of applicants. The representative of the second co-owner of the company — the PPF group — refused comments, having advised to address Emma Capital. In the Safmar group and in Eldorado company did not provide the comment of RBC. The CEO of Tehnosila (Safmar belongs) Ilya Timchenko refused to talk to RBC on this subject[1].

The source in investment circles confirmed to RBC that Gutseriev-Shishkhanov' family shows interest in purchase of Eldorado, but noted at the same time that on network there are also other applicants.

According to the certificate of incorporation, in June, 2016 at Eldorado LLC the owner was replaced. Earlier the company for 100% belonged to the Cyprian Facipero Investments Limited which head company is the Dutch PPF Group B.V. On June 20, 2016 Cyprian Bovesto Limited became the owner of 100% of Eldorado LLC. Its owner at the moment is Facipero Investments Limited, beneficiaries — PPF Group N.V. and Emma Omega Ltd.

2015

  • Sales made 117,490 million rubles (including VAT);
  • Online sales made 16,856 million rubles (including VAT);
  • Openly 45 shops, floor spaces are increased by 42,196 sq.m.;

2014

As of December 31, 2014 the Eldorado network includes 374 retail hypermarkets, 31 points of online store and 14 Internet hypermarkets. The floor space makes 548,584 sq.m., the general – 726,627 sq.m.

  • Sales grew by 16.2%, having reached 131.7 billion rubles (including VAT);
  • Sales of comparable shops (like-for-like) grew by 17.8%;
  • Online sales grew by 61.6%, having reached 17.8 billion rubles (including VAT);
  • Growth of revenue of retail stores per square meter the floor space for 20.2%;
  • Growth of revenue on shop for 15.4%;
  • Openly 8 shops, 8 shops are closed, floor spaces are reduced on 10 thousand sq.m.
  • For the 2014th year the share of Eldorado network in the online market grew from 7.3% to 9.4%, traffic on the website increased by 30%, and conversion of the website – for 60%.

2013

Growth of online sales by 425%

  • Growth of retail sales by 0.9%
  • Growth of online sales by 425.5%
  • Opening of 129 new points of issue and order
  • Opening of 12 new online stores
  • Start of a new format of online store - opening of 13 Internet hypermarkets in the large cities of different regions of Russia

Declaration of sales plans of the company of M.Video network

In April, 2013 it became known that in the Russian market of sales of consumer electronics the largest transaction for all its history can take place. As Kommersant became knows[2], M.Video, the market share more than 12%, intends to redeem from the Czech PPF Group of the closest competitor — Eldorado network (8.6%). In 2011 retailers already discussed a possibility of merge, but then in the united company PPF expected to receive control, on the contrary. In April, 2013 the M.Video network sent to the Federal Antimonopoly Service (FAS) the petition on acquisition of 100% of business of Eldorado, told the source of Kommersant familiar with contents of the document.

The Federal Antimonopoly Service of the Russian Federation (FAS Russia) approved the petition of M.Video Management LLC for acquisition of 100% of shares in authorized capital of ELDORADO LLC with simultaneous issue of M.Video Management LLC of the instruction about implementation in the territory of the Russian Federation of the actions aimed at providing the competition.

So, M.Video Management LLC is offered within 6 months after transaction to stop implementation of activity of M.Video Management LLC and (or) ELDORADO LLC on a part of squares of the shopping facilities located in the territory of 35 territorial subjects of the Russian Federation for the purpose of decrease in the markets of retail sale of household goods and also audio-and video equipments in each of these territorial subjects of the Russian Federation of their cumulative share to the level of 35% and providing a possibility of use of the released areas to their competitors.

Including it is necessary to terminate lease agreements and sublicense agreements and also to provide in use to the impartial third parties the shopping facilities which are owned.

Submitted to M.Video the petition FULL FACE for acquisition of 100% of Eldorado

On April 17, 2013 submitted to M.Video the petition FULL FACE for acquisition 100 percent of shares of Eldorado at the Czech PPF Group. The cost of the transaction was not specified.

FAS constrains the transaction on merge to M.Video

On August 28, 2013 it became known that the company merger selling home appliances and electronics of M.Video and Eldorado broke again.

As the representative of M.Video reported to the Kommersant edition, consultations with PPF Group owning Eldorado "are suspended because of instructions of FAS and lack of consensus under the terms of the transaction". About what terms of transaction there is a speech, M.Video did not begin to explain.

The Federal Antimonopoly Service granted permission for merge of M.Video and Eldorado — two the sellers of electronics and home appliances, largest in Russia — in July, 2013. At the same time, Vedomosti writes, FAS gave the instruction to close shops of one of networks in 35 regions, including in Moscow and the Moscow region, and to give the freed squares to competitors. On expert evaluations, the speech could go about closing of 40 — 60 shops. And, as reported to Kommersant the source familiar with the course of negotiations, the possibility of closing only of Eldorado shops was considered.

2012: Growth of retail sales by 15.3%

  • Growth of retail sales by 15.3%
  • Growth in sales of comparable shops (LfL) for 3.4%
  • Growth of online sales by 67.2%
  • Acquisition and transfer under a brand of Eldorado of 28 shops of Beringov network
  • Opening of 30 new shops
  • Opening of 11 Internet divisions in the large cities of different regions of Russia
  • Start a new format of online store – a punktyzakaz and issue of goods of online store

2011: Unsuccessful attempt of merger of M.Video network

In 2011 the Czech company PPF Group owning the Russian network selling home appliances of Eldorado wanted to receive as a result of exchange of shares control in the united company with M.Video. However after the preliminary negotiations lasting about a month it was announced that the transaction will not take place. The sources close to negotiations, then reported that the parties did not manage to agree about the price. PPF estimated M.Video, proceeding from stock quotations of this company, and in M.Video considered that the company is much more expensive.

2010: 700 shops work

In 2010 under a brand of Eldorado 700 shops, 345 of which, with a total area of 708 thousand sq.m work, belong to the company. As of February 1, 2010 the number of employees of retail network exceeds 16 thousand people.

2009: Revenue of 88.5 billion rub

In 2009 revenue of the company exceeded 88.5 billion rubles. Co-owners of the company are PPF international financial group and the founder of network Igor Yakovlev.

1994: Creation of the company

The Eldorado company is formed in 1994.

Notes