OR Group (former Footwear of Russia)

Performance indicators

2021: Decrease in revenue by 21%, to 8.57 billion rubles

OR Group (formerly Obuv Rossii Group) completed 2021 with revenue of 8.57 billion rubles, which is 21% less than a year earlier. The revenues of the westfalika.ru trading platform group in 2021 amounted to 4.1 billion rubles (-16.3%), the westfalika.ru marketplace - 1.9 billion rubles. The number of marketplace partners at the end of 2021 amounted to more than 1 thousand companies. The reporting was published at the end of January 2022.

Internet sales of OR Group in 2021 decreased by 4.4% to 0.8 billion rubles. Net debt practically did not change and amounted to 12.5 billion rubles, the group said in a statement.

From the activities of issuing cash loans, OR Group received 1.87 billion rubles in revenue (-28.9%) at the end of 2021 with an average loan amount of 18.9 thousand rubles. At the end of 2021, the cash loan portfolio amounted to 2.553 billion rubles.

In 2021, 2.587 million parcels were issued. The number of participants in the loyalty program, which operates in all retail chains included in the group, increased by 4.8% over the year - to 2.977 million participants compared to 2.841 in 2020.

The gross cost of goods (GMV) OR Group in January-December 2021 amounted to 10.124 billion rubles. By the end of this period, OR Group had 751 stores, compared to 840 the year before. In this number, the number of points operating under the franchise increased by 1.1%, to 117.

Speaking about the most important events for the group in 2021, the company noted the launch of the platform for issuing online loans "GiveMoney," which includes a website and a mobile application. The share of remote issuance by the end of 2021 reached 14%.

In 2021, the rebranding program was completed, which included a change in positioning - OR Group went beyond the fashion segment, began to develop the format of a universal store, a marketplace, more actively integrate into the logistics infrastructure of the Russian online trading market and develop financial services.^[1]

Information technologies in "Footwear of Russia"

2019: "Shoes of Russia" will launch an online platform for working with suppliers

As it became known on November 26, 2019, Obuv Rossii Group of Companies is developing a business model and a format for working with suppliers. The retailer plans to build work with new partners on the principle of a marketplace and provide 30-50% of retail space with more than 700 own stores for third-party goods. All interaction with partners will be built through the online platform "Sell," which will work from December 2019.

It is expected that the retail range will expand twice due to new categories: household goods, household goods, decorative cosmetics, small household appliances. This work model will allow suppliers to increase revenues due to the independent formation of prices for goods and participation in the profit of stores. Footwear of Russia plans to increase the retail conversion rate by more than 1.5 times and increase the revenue of existing outlets by more than 30% in the next two years. It will also allow the company to smooth out seasonality by introducing additional product groups.

The project is part of the company's strategy to build a modern retail format and integrate into the multiservice omnicanal and retail space. The main components of the strategy: flexible and constantly updating assortment; high-tech services, including; financial integration logistic into infrastructure, e-commerce development of online ordering points; improvement of own - Internet stores; Create an ecosystem to interact with customers and introduce new formats for working with suppliers.

Given the market trends, we decided to modernize the format of our stores, in fact, turn them into offline marketplaces. The challenge we face is to maximize our in-store offering to meet the needs of our customers. The assortment diversification strategy has already proven its effectiveness: the group has successful experience in expanding product groups through the categories of clothing and accessories, "said Anton Titov, director of the Obuv Rossii group of companies.

"Shoes of Russia" intends to work with both large and medium and small suppliers, regional manufacturers. The company plans to use the experience of partners who are experts in their product categories. Suppliers will independently determine the retail price of goods and participate in the formation of an assortment matrix. The group will use a flexible approach in determining the geography of sales: each of the partners will be able to choose the regions and stores in which he would like to present his product. Suppliers will deliver goods to the company's central warehouse in Novosibirsk, if we are talking about sales throughout the network or in a region remote from the supplier, or to the nearest regional warehouse, if the goods are sold within the partner's region of work.

For its part, the company provides the entire infrastructure: an extensive retail network; an established logistics system and a network of regional warehouses; IT infrastructure; Connecting to Payment Installment Service for Buyers. Interaction with suppliers will be fully automated based on the online platform. The partners of Footwear of Russia will receive online reports on the placement of goods in retail outlets and on the progress of its sale; control all processes and promptly make a decision on the movement of goods.

"Shoes of Russia" is already negotiating with Russian and foreign suppliers, and sees great interest in working in this format. The company's range of stores as of November 2019 has more than 10 thousand SKUs; As a result of the transition to an updated business model, the group expects the item range to double. In the future, in addition to offline retail outlets, Obuv Rossii intends to offer partners to connect an online sales channel based on their own online stores.^[2]

History

2023: Introduction of the observation procedure

At the end of November 2023, the Moscow Arbitration Court introduced surveillance against PJSC OR Group (ORG, the parent company of OR Group). Similar measures were later introduced in relation to Design Studio LLC (specializing in the wholesale and retail sale of shoes and related goods, part of the OR Group), as well as in relation to OR LLC, which in the holding was engaged in raising financing through the issue of bonds.

According to Interfax, citing a judicial file cabinet, observation against OR Group was introduced at the request of Promsvyazbank, the requirements of which are included in the register in the amount of 1.7 billion rubles. Sberbank also filed for bankruptcy of PJSC "OR Group," it was accepted by the court as an application for entry into the bankruptcy case. The requirements of the largest Russian bank will be considered as follows, the newspaper notes.

Earlier, OR Group made the first default on the non-market issue of BO-07 bonds. The main holder of the issue is Promsvyazbank. Subsequently, OR Group made several more defaults on the payment of coupons on bonds. The company called the reason for defaults the lack of funds on the current account in the amount necessary for the fulfillment of obligations. OR Group previously also prepared a comprehensive debt restructuring program and sent it to Sberbank, VTB and Promsvyazbank.

In October 2023, the observation procedure was introduced in relation to S-Tep Factory LLC (Berdsk, Novosibirsk Region), 1.3 billion rubles of Sberbank's claims were included in the third phase of the company's register of creditors.

By mid-December 2023, the arbitration courts are considering bankruptcy applications of Arithmetic LLC (microcredit company OR Group) and the founder of OR Group Anton Titov.^[3]

2022: Entering the position of OR Group CEO Anton Titov

On June 24, 2022 , OR Group announced the appointment of Anton Titov as the new CEO. The founder of the company again headed it instead of Aleksei Usik, who resigned ahead of schedule. Learn more [[Edit Titov Anton Mikhailovich 'here]].

2020: New company name - OR Group

At the end of November 2020, it became known that the Obuv Rossii group of companies, due to the expansion of business beyond the fashion segment, would change its name and operate under the OR Group brand.

2019: Opening of test points for issuing online orders of "Russian Post"

On November 7, 2019, Russian Post JSC announced that, together with the Obuv Rossii group of the company, it had entered into a partnership agreement, under which points for issuing online orders from a postal operator would open on the basis of Shozhov Rossii stores in November 2019. Read more here.

Notes