FULL MARKET COVERAGE IN A SINGLE RETAIL ENVIRONMENT

The Group believes that shoppers’ desire to receive their purchases “here and now” will play an increasingly important role in the future of retail. The combination of faster, more reliable and more accurate shipping methods is becoming a key factor in purchasing choices.

By the start of 2021, 85% of online orders placed by residents of the 279 Russian cities with M.video—Eldorado stores could be delivered within 24 hours. This covers 60% of the Russian population. At the same time, orders that account for 34% of GMV are available for pickup or ready to be dispatched for delivery within 15 minutes after purchase, an unprecedented figure for Russian retail. Some 98% of the Group’s online orders are delivered on time.

• This level of fulfillment is the result of advanced retail and logistics infrastructure, which includes:
• 1,074 stores (542 M.video stores and 532 Eldorado stores)¹ . The distance between the Group’s easternmost store in Petropavlovsk-Kamchatsky and its westernmost point in Kaliningrad is more than 7,420 kilometers. Our stores are an extension of the online shopping experience, a place to showcase appliances and innovations not only to store visitors but also to online users through our video consultation service. In addition, the retail network acts as a focal point for inventory that accounts for 46% of the Group’s warehouse area. The Group uses predictive analytics to place around 50% of its inventory in stores. This highly efficient stock management helps the Group to provide the fastest possible access to in-demand goods. The high density of our stores makes it possible to successfully develop our express delivery and customer pickup services. In this regard, we consider the expansion of our retail network as our main tool for supporting and developing online sales.
• A network of 55,000 partner pickup points, as well as over 60 partnerships with delivery services, including taxi aggregators.
• Logistics infrastructure with a total fulfillment area of 1 million square meters (including stores), including central distribution warehouses and multiplatforms. The Group’s distribution centers cover the entire territory of Russia, providing customers in every region with access to the most in-demand goods.
• 100% online coverage in cities where we are present, thanks to our advanced online platform.

Thanks to investments in the retail network and logistics, which have exceeded RUB 150 billion since the Group was established, we are several years ahead of the leading marketplaces in the development of our logistics system and last-mile service. The Group plans to continue to improve the quality of its delivery and pickup services and has set a number of strategic goals in this area. In particular, the Group intends to increase the share of goods available for pickup or ready to dispatch within 15 minutes from 34% to over 50% of GMV (see “Hacking Retail growth strategy”).