Melon Fashion Group, one of the leaders of the Russian fashion retail, the owner of 4 brands – ZARINA, befree, LOVE REPUBLIC and sela, publishes its 2021 annual results demonstrating sustainable growth.
Key figures for 2021:
• Melon Fashion Group revenues has reached 37.5 billion roubles, growing 49% against the previous year.
• EBITDA has grown 38% amounting to 8.6 billion roubles.
• The Group net profit amounted to 3.5 billion roubles.
• The Company has expanded unrolling 107 new stores and improving locations of 23 stores traffic-wise. The Company operates in 181 cities and 5 countries. By the end of the year, the total number of Company stores of all four brands: ZARINA, befree, LOVE REPUBLIC and sela was 845.
• The total trade space of Melon Fashion Group numbered 227 thousand sq m.
• The share of online sales was fixed on 32% amounting to 12 billion roubles. Expanding its online channel, befree has launched sales on Amazon, the biggest international market place.
• The Company was dealing with 231 suppliers from 7 countries.
Mikhail Urzhumtsev, CEO of Melon Fashion Group:
We entered 2021 self-assured and ready to conquer new heights. Our striving was rewarded by brilliant results in all senses of the word. A perfect business model enhances our efficiency even in unstable circumstances, while the inner power of the team and the common goal – to be the vanguard – move us forward.
The Company’s revenues have grown by half and reached 37.5 billion roubles. It was enhanced by active development of online sales and prudent expansion policy. Our retail chain has expanded up to 845 stores in 5 countries. Thus, offline channel generates 68% of total sales and online sales make 32%.
While actively developing, we worked on our own innovative solutions in retail. As always, the main hero is the one who can surprise its customers and overwhelm them with new impressions. ZARINA and LOVE REPUBLIC have presented absolutely new concepts of interior design of their stores, befree is the first fashion hypermarket of about 1 200 square meters. We are especially proud of the fact that all design solutions are in line with world trends in store design and architecture, moreover, they have been created by our own in-house team.
In spite of the new challenges that the fashion industry has faced in the present times, our ambition and vigor will help us not only to strengthen our position on the market, but also to expand ZARINA, befree, LOVE REPUBLIC and sela operations on the Russian market in order to meet demands of all strata of population, offering products of different prices both online and offline.
Social responsibility strategy has stepped onto a new level of development. The project of assisted employment that we were carrrying out jointly with Rabota-I center and RAOUL foundation has obtained several prestigious awards. Also, we kept on supporting excursions to St Petersburg museum for deaf and hearing-impaired children. We continued to pay extra subsidies to Pervomayskaya Zarya pensioners and support the Petersburg Parents foundation. In China, we went on patronizing a school for poor children providing them and the school staff with clothes and shoes. ESG strategy will be announced in summer 2022.
Read more about the results of Melon Fashion Group in the full version of the annual report HERE.