Melon Fashion Group, the owner of ZARINA, befree, LOVE REPUBLIC and sela brands, publishes its annual report. Despite the COVID-19 crisis, the company demonstrates the growth of key indicators.
In 2020, Melon Fashion Group increased its revenue by 9.7% to 25.2 bn rubles. EBITDA increased by 3.2% to 2.9 bn rubles. Net profit amounted to 1.7 bn rubles.
72 new stores were opened and 17 stores were relocated to larger areas. The total number of stores was 809, and the total retail area was 208,000 m2. An important milestone in the development of retail was the launch of a new concept of sela stores created by our own team of designers and architects.
The online sales grew dramatically, their share in the structure of total sales reaching 34%. The revenue in the group's online stores increased by 112%, and on marketplaces, by 75%. In 2020, Melon Fashion Group entered the top three sales leaders among fashion brands at Wildberries and Lamoda and confidently holds the top position.
In the context of a pandemic and closed borders, the company focused on working with a pool of trusted and loyal suppliers to ensure that all collections are delivered in full and without delay through all sales channels. In 2020, Melon Fashion Group collaborated with 240 suppliers from 7 countries.
In the sustainability section, Melon Fashion Group published the brand's eco-initiatives and its strategy for sustainable supply chains. The first step of its implementation was an audit of the production capacities of partner factories, product quality and the suppliers' compliance with the updated Code of Conduct.
The retailer has continued to implement its social responsibility strategy. The project of accompanied employment, created by Melon Fashion Group in partnership with Rabota-i center and Raul fund, was joined by sela stores in Saint Petersburg, and, for the first time, by the stores of Orel. In addition, the company supported the Languages without Borders Center and the Saint Petersburg Parents Charitable Foundation. The Shanghai office of Melon Fashion China has taken over its patronage a school in Ke He village, Sichuan Province, providing students from low-income families and teachers with clothing and shoes.
Mikhail Urzhumtsev, CEO of Melon Fashion Group:
"The past year and its uncertainty have shown that adaptability is an important skill that all players in the business community must develop. Those who respond quickly and correctly to the challenges of the market move forward. We've been learning this lesson for years, looking at the issue from different angles. But it was the harsh COVID-19 crisis that became a real test of strength. Our adaptability, coupled with the loyalty of the team and partners, as well as the support of the state, allowed us to quickly rebuild all our processes, restart the business after the lockdown and see positive financial results."
Read more about the results of Melon Fashion Group in the full version of the annual report HERE.