Saks Company Turnover Dynamics 2000 – 2004
Saks Presentation 2017 General Information about Saks Company
General Information about Saks Company
. incorporated in 1994; . the largest toy importer and wholesaler in Russia; . represents only high quality products in its assortment; . has an experience of dealing with world famous brands; . handles the leading brands in the Russian toy market; . possesses 5 subsidiaries in different regions of Russia and subsidiary in Kazakhstan; . over 1000 employees; . 2017 year marketing budget – over $ 30 mln. (the largest in Russian toy industry); . cooperates with more than 7.500 outlets all over Russia; . operates TOY.RU omnichannel chain (the largest Russian toys web store and 158 retail stores in Russia).
1 Company Structure
Directorate
HR Marketing Department Financial Sales Logistics Retail Department Department Department Department Department
Brand- PR and Advertisement Supervisors and KA managers Moscow Regional www.toy.ru – web Managers Department Merchandisers managers managers store TOY.RU– retail stores warehouse
2 Subsidiaries
Number of Warehouse, Number of Merchandisers Number of Region Foundation Office, m2 m2 Employees and Selling Outlets Assistants Moscow 1994 800 19 000 413 69 over 2600 Ekaterinburg 2002 240 3 200 58 23 over 1100 Novosibirsk 2002 260 3 100 76 41 over 1000 Kazan 2002 230 3 000 49 36 over 800 Rostov-on-Don 2005 250 3 200 61 33 over 900 St.Petersburg 2005 230 3 500 60 30 over 700 Kazakhstan 2013 200 2 000 42 18 over 400 Total 2 210 37 000 759 250 over 7500
3 - Saks company subsidiaries
4 Sales Split By Brands, 2017 (distributor’s prices)
Hasbro, Lego, 17% 23% Mattel, 7%
Spin Master, 12%
Others, Welly, 10% 19% MGAe, Zapf Creation, 6% 6%
5 Sales Split By Regions, 2017
Ural region (Ekaterinburg), Moscow region, 10% 39% The Volga region, 9%
Sibirean & Far East region (Novosibirsk), 11%
Kazakhstan, 4% South-European North-West region (Rostov- Other regions, region on-Don), 11% 7% (S.-Petersburg), 9%
6 Sales Split By Customers, 2017
Specialized toy stores, Department stores, 17% Specialized children goods chains, 47%
Retail chains, supermarkets, hypermarkets (both local and international), 26% Others (open markets, kiosks, gas Web stores, Wholesaters, stations), 2% 6% 2%
7 Toy.ru Omnichannel chain
In 2011 Saks Company started it’s own web store www.toy.ru. TOY.Ru Retail chain Today it is the largest web toy store in Russia with up to 5 075 000 visitors per month and up to 12 600 daily purchases.
8 Toy.ru Omnichannel chain
In 2012 the first “Toy.ru”TOY.Ru retail Retailstore was chainopened in Moscow.
9 Toy.ru Omnichannel Chain
In January 2018 - 158 Toy.ru retail stores.
10 Warehouse
New modern warehouse was launched in 2010
It is situated 10km on the south of Moscow on the plot of a total 25000m2 and building occupies 14000m2 with a total capacity of 26000 pallets. It is equipped with multilevel racks 11 m high. Transportation and loading operations is effected by reach-trucks, pallet stackers and order pickers.
11 Warehouse
For the purposes of warehouse operations improvement a new modern WMS was implemented.
12
COMPANY
TOY.RU — in 2017 becomes the winner of the Russian Federal Awards “Retailer of the year”
TOY.RU — one of largest network retail of toys (163 stores by December 2018)
TOY.RU — has a strong portfolio with over 4000 SKU
TOY.RU — the largest online store of toys in Russia
TOY.RU — OMNIchannel federal network retail
TOY.RU — has an own logistics vehicle fleet
TOY.RU — sells toys of top brands. COMPANY
2011 — the online store www.toy.ru was created 2012 — the first retail store was opened 2015 — 68 retail stores operated in 35 cities of Russia 2016 — 115 retail stores operated in 67 cities of Russia 2018 — 163 retail stores in 72 Cities of Russia by the end of December 2018
2018 — plan to increase the turnover by 30% 2018 — the stores of the retail net are showing LFL growth up to 18% LOCATION
RUSSIAN FEDERATION
MOSCOW VELIKY NOVGOROD IVANOVO KIROV NIZHNY NOVGOROD PETROZAVODSK SARANSK TAGANROG UFA MOSCOW REGION VLADIVOSTOK IZHEVSK KOSTROMA NOVOKUZNETSK PSKOV SARATOV TOGLIATTI KHABAROVSK 158 stores ALMETYEVSK VLADIMIR IRKUTSK KRASNODAR NOVOSIBIRSK ROSTOV-ON-DON SMOLENSK TOMSK CHELYABINSK ARKHANGELSK VOLOGDA KAZAN KRASNOYARSK ORENBURG RYAZAN SOCHI TULA CHITA in Russia*: BARNAUL VORONEZH KALUGA KURSK PENZA SAMARA SYKTYVKAR TYUMEN YAKUTSK BRYANSK YEKATERINBURG KEMEROVO MURMANSK PERM ST. PETERSBURG TAMBOV ULAN-UDE GROWTH OF RETAIL STORES
300 250 250 180 200 158
150 115 100 68
50 2 16 0 2013 2014 2015 2016 2017 2018 2019 FRANCHISE — NEW WAVE OF GROWTH
• Franchise Supermarket model: 4 types available;
• Transition to fast scaling model of business;
• Quick increase of turnover;
• Expanding through boundaries — new markets for us (CIS countries);
• Geometric progression of new stores in 2018-2019;
• TOY.RU — retail net №1 in 2020. VENDING MACHINES
We plan to install branded vending machines in every large public place or mall, where there is no necessity to open the store or no free locations. DIRECT PROMOTION OF BRANDS
Vending machines with top assortment in every railway station or international airport. REBRANDING FINISHED IN 2017
NOW!
BEFORE… RETAIL STORE
Located in the big shopping centers, malls, department stores Also presented as street-retail Commercial space is from 60 to 227 sq.meters Meet all the requirements in compliance with The Health & Safety Regulations TOY.RU — THE BEST RETAILER IN RUSSIA
Russian Federal Awards “Retailer of the year” comprises the best sellers in both Retail and On- line channel. In 2017 TOY.RU becomes the best in three nominations:
- “The best retail store chain in Russia in 2017-2018”, category “Kids”
- “The best on-line store in Russia. Webshop Awards Russia 2017-2018”, category “Kids”
- “The best on-line store in Russia. Webshop Awards Russia 2017-2018” HISTORY OF THE DEVELOPEMENT
2017 г. 2011 TOY.RU online store internet turnover TOY.RU store +30% was created of toys 1№1 2010
RETAIL CONCEPT
2012 20172016 г. Открыто in The 1-st 115 розничных 2018 retail store 158 retailмагазинов stores was opened operated in Russia MEET TOYRUSHA AND HIS FAMILY
• Toyrusha – the new mascot of TOY.RU company.
• A little robot, who is the expert in toys’ world.
• Greetings to Toyrusha and his familly in our stores since December 2017. INNOVATION TIME NEW CONCEPT OF A+ STORES FOR 2018
• New type A+ stores— Toyrusha • We know, what mothers want • Up to 3 shops are planned to open • Commercial space up to 350 sq. meters TOYRUSHA ONLINE STORE
• Starts in September 2018
• Uses shop-in-shop model
• Up to 30% of common SKU with TOY.RU
• Gives additional SEO opportunities for the whole company THE FLAGMAN STORES
TOY.RU FLAGMAN STORES IN THE CENTER OF MOSCOW :
• 13, Noviy Arbat — Street Retail • TOYRUSHA — shops of new format TARGET AUDIENCE
Gender Age 18-24 y.o. 25-34 y.o. 35-44 y.o 45 y.o. and older Women Men 15% 51% 16% 18% 71% 29%
Average bill in Off-line traffic* off-line stores 1 380 000 customers visited our stores in December 2017 416 000 purchases were made in December 2017 2 406 RUR 14 minutes is the time spent in the shop by 1customer
* Accordingly December 2017 data NEW TARGET AUDIENCE
Families with kids Families with kids of different age under 3 y.o.
Average bill in Off-line traffic* off-line stores 340 000 new customers up to December 2018 480 000 purchases will be made 3 000 RUR 19 minutes is the time spent in the shop by 1customer
* Accordingly to forecast of December 2018 GROWTH OF ONLINE STORE
7 years on the market Deliveries throughout the country
Up to 5 075 000 unique Average bill 3 540 rubles visitors per month*
Up to 12 600 orders daily* CR up to 6,15%*
Over 1 500 000 regular Competitive prices customers*
* Accordingly December 2017 data LOGISTICS
Branded cars
All cars in ownership
Delivery all over Russia, in 20 Kazakhstan cities and 12 cities of Belarusian Republic ADVERTISING
TV advertising on the top children’s and entertainment TV channels
РЕКЛАМНЫЕ ПЛОЩАДКИ:
Mass media advertising
Outdoor advertising on billboards, in Shopping malls and vehicles
THE PLACE OF YOUR PRODUCTS USING THE CITY TRANSPORT OUR OWN YOUTUBE CHANNEL TOYRUSHA
• Own production of unique entertaining and educational content for YOUTUBE.
• Direct advertising and product placement of different brands.
• More than 5,4 mln. of views. SALES SPLIT BY REGIONS 2017
The Volga region Other regions 4% 5% Sibirean & Far East region 8%
Ural region 9% Moscow and Suburbs 49%
South-European region 8%
North-West region 17% SALES SPLIT BY BRANDS 2018
WELLY OTHER BRANDS 3% 11% LEGO 24% ZAPF CREATION 5%
SPIN MASTER 9%
MATTEL HASBRO 11% 22%
MGA 15% BRANDS ADVANTAGES
High brand recognition ON-the-spot emergence of novelties in the showcase Delivery in 15 min to any store of our network Free delivery to any place of Russia Express delivery during the day Online store 24/7 Competitive prices STRUCTURE
CEO
INTERNET HR MARKETING FINANCIAL RETAIL SALES WEB SALES DEVELOPMENT ANALYTICS DEVELOPMENT DEPARTMENT DEPARTMENT DEPARTMENT DEPARTMENT DEPARTMENT DEPARTMENT DEPARTMENT DEPARTMENT
MOSCOW AND RECRUITMENT ADVERTISING CORPORATE REGION SALES SUBDIVISION SUBDIVISION SALES SUBDIVISION SUBDIVISION
TRAINING PR AND BRAND AUDIT CALL CENTER SUBDIVISION SUBDIVISION SUBDIVISION
MERCHANDISING LOGISTIC SUBDIVISION SUBDIVISION WE ARE OPEN TO PARTNERSHIP