JOINT-STOCK COMPANY MELON FASHION GROUP INCREASED ITS SALES IN 2015
According to preliminary results of 2015, Melon Fashion Group’s turnover reached RUR 12.6 billion (excl. VAT) growing over the year by 12.3%. befree has contributed the biggest share to the Company’s turnover, the brand’s sales having boomed by 22%.
The Company has managed to boost its sales due to upsurge in efficiency of its own retail. By the end of the previous year, MFG had opened 37 new stores: 15 ZARINA stores, 12 befree stores and 10 shops in LOVE REPUBLIC. The Company has started launching new store concepts with bigger sales spaces and upgraded interior design. LOVE REPUBLIC continued to open the stores of the new concept adopted in the end of 2014. ZARINA and befree launched their upgraded and refurbished stores in August-September 2015.
The new conceptual approach to the stores interior design has resulted in a totally new quality of the Group’s retail. The overall space of all the stores has increased over the past year by 3.7% and exceeded 100 thousand square meters. In spite of the fact that a number of weak shops have been closed. Thus, ZARINA has lost 12 stores, befree closed 11 stores, LOVE REPUBLIC decrease its chain by 4 stores. The number of franchisees has not changed – there remain 134 of them.
“Adjusting to today’s uneasy situation, we are trying to find compromises in relations with our partners and develop shop concepts of a totally new quality level. In this way we manage to safeguard stable operations and elaborate new projects”, comments Mikhail Urzhumtsev, CEO and President of Melon Fashion Group.
Over the past year, the Company has increased its geography of presence opening the first franchise LOVE REPUBLIC store in Georgia. Thus, as of December 31, 2015, Melon Fashion Group operated 642 stores: 604 in Russia (befree – 234, ZARINA – 203, LOVE REPUBLIC – 167), 20 stores in Ukraine (befree – 7, LOVE REPUBLIC – 13), 11 stores in Kazakhstan (befree – 6, ZARINA – 1, LOVE REPUBLIC – 4), 5 befree stores in Belarus, 1 LOVE REPUBLIC store in Armenia and 1 store in Georgia.
The JSC Melon Fashion Group operates three fashion brands: befree, ZARINA and LOVE REPUBLIC. The Company runs full cycle of the fashion business from design through production and buying to distribution, sales and marketing of women’s and men’s clothing, shoes and accessories.