Press service of TSUM and DLT
During the closure of TSUM and DLT, we were promptly reoriented to online, primarily to maintain the smooth operation of the tsum.ru online store. This has paid off: online sales are up more than 100% over the same period last year. Of course, in such a short time, it is impossible to fully compensate for sales with an online store, but we are pleased with the efforts and the result: every day of quarantine, about 300-350 customers, who used to buy only offline, went online and could evaluate how convenient it was. For example, some of the catalog models can be viewed in 3D. Various variations are also offered, with which you can supplement the selected item, and in the basket the final amount is calculated taking into account the current promotions. The main focus of the anti-crisis policy was placed on new collections of brands in the online store and on the safety of online shopping. At the same time, orders are still delivered on the same day and at prices 10-20% lower than in Europe.
At present, after the opening of TSUM and DLT, we continue to pay great attention to the safety of our customers and employees. Hourly disinfection of premises and surfaces in sales areas is carried out, where, among other things, markings are applied to maintain social distance. At the entrances to department stores, protective equipment is provided - screens and gloves, hand sanitizers are always available.
TSUM employee in protective screen, mask and gloves © press service
It should be noted that new collections go on sale without interruption. During the quarantine, we actively communicated with our partners in Europe about the supplies and are grateful to them for compliance with all agreements and strict fulfillment of obligations. The plans for the second half of 2020 are to maintain a wide variety of products with an emphasis on the hottest things of the season. In addition, thanks to a large purchase in TSUM, those best-selling models are often available that have already received the sold out status at other sites and in foreign boutiques.
The priority direction of TSUM's development in the second half of the year will be work on the service, the best client experience. We have been joined by two new executives who are responsible for communicating with customers both offline and online. Our clients can appreciate all the benefits of personal shopping, keep abreast of new products, promotions, client sessions and exclusive receipts.
Pop-up-corner Loewe Paula's Ibiza at TSUM © press service
In addition, we are actively continuing to develop our online store. In 2018, TSUM opened regional points for issuing online orders in Sochi and Krasnodar, where you can not only pick up goods, but also try on things and get advice from personal shoppers. Experts help you choose shoes and accessories for purchase, as well as place future orders. You can pay for delivery at pick-up points after trying on. All this has significantly increased the convenience of our clients in the regions. We plan to develop further in this direction.
Mikhail Kusnirovich, chairman of the board of directors of the Bosco di Ciliegi group of companies, GUM, shopping center "Vesna", shopping center "Petrovsky Passage", shopping center "Smolensky Passage"
Our future plans are optimistic and realistic. We have postponed a certain number of investment projects for the opening of new stores, the construction of which was planned from May to August, to next year. The other part - from the new concept of the Paul Smith boutique in GUM on the occasion of the 50th anniversary of the brand to the new large outlet in New Riga - was decided to be brought to life.
New pop-up space of the "Section" store in Petrovsky passage © press service
We also intend to implement everything that was planned for the fall-winter 2020/21 season in terms of goods and activities. We will focus heavily on online sales, which have grown very noticeably during the quarantine. In addition, we are preparing a major reboot of the Vesna shopping center in 2021 - following the example of the Chereshnevy Les festival, whose anniversary we celebrated with a gorgeous performance of a polyphonic orchestra. We will look for smart solutions for our initiatives.
Gennady Levkin, General Director of the Stockmann department store chain
Stockmann is primarily a chain of traditional fashionable department stores, and prior to self-isolation, our share of online sales was relatively small. In addition, our annual Crazy Days campaign (held twice a year and offers favorable prices for current collections of world brands -) fell on the period when stores were closed. Since the product had already been purchased, all efforts were redirected online: we had to very quickly resolve issues with strengthening and optimizing almost the entire online sales chain - from delivery to setting up online advertising. As a result, during the quarantine period, we showed a 12-fold increase in online sales.
And yet, the bulk of the business is traditional retail, so the losses during the coronavirus pandemic are huge for us. We are still preparing for a full-fledged exit from quarantine: department stores have opened in Moscow, the Moscow region and St. Petersburg, but so far there are closed spaces in Kazan and Yekaterinburg. In Krasnodar, according to the governor's decree, we work only on an area of 800 sq. m.
Corner Paola Ray in Stockmann department store © press office
A long recovery process to the 2019 level awaits us, and it will depend on many factors: the course of the coronavirus pandemic and the corresponding actions of the authorities, the general economic situation and the recovery in consumer demand. One way or another, we will definitely present in September new collections for the fall-winter 2020/21 season, we will hold the "Crazy Days" campaign and delight customers with a New Year's market.
We will certainly increase our online presence and develop the concept of the Stockmann omnichannel department store. Among other things, we plan to expand its assortment not only by new brands, but also by whole categories of goods. To do this, we are going to open our own marketplace, the concept of which is currently being developed. The development of traditional retail will also continue. In addition to the opening of large department stores with an area of 6-8 thousand square meters. m, we are considering expansion due to fundamentally new formats for us with a slightly different assortment policy and an area reduced to 2-3 thousand square meters. m.
Irina Ryabko, managing director of Tsvetnoy department store
For Tsvetnoy, the losses that were caused by the suspension of sales caused by the coronavirus pandemic are expressed not only in monetary terms, but in the inability to implement long-planned plans. The department store will celebrate its tenth anniversary in December: the event was to be accompanied by a large-scale celebration program with many interesting collaborations and events. Now, due to financial losses and restrictions that were introduced in order to prevent COVID-19 in relation to shopping facilities and visitors (for example, the ban on holding mass events remains), plans have to be revised and changed on the go. But we, of course, will try to surprise even in such conditions.
It must be said that Tsvetnoy is not a classic department store in format. Rather, we represent the concept store niche. We do not purchase goods, we do not have our own brands. Since 2016, we have been leasing 100% of the space, but we deeply intervene in the operational processes of our partners, analyzing many indicators. This allows us to provide our customers with a unique selection of collections and a high level of service. This management model enables us to avoid significant losses incurred by classic department stores, which invest their fixed assets in the purchase of goods and the production of private label collections. We managed to agree on mutual concessions with almost all partners: we freed them from paying rent payments for the downtime, and they, in turn, reimbursed us for the costs of operating the building and paying utility bills. The June figures show that our actions were correct. When opening, we retained all partners, which is more than 130 tenants and more than 1,000 brands.
As for the further strategy that will help us recover faster, the team has some groundwork regarding local changes in the concept and strengthening the brand pool. It is difficult to work in a constantly changing reality, but here you can find new opportunities for development.
Over the ten years of operation, Tsvetnoy has become more than just a trading platform. This is a brand that unites buyers and partners in a real community: we have our own face, an understandable buyer. All partners, according to preliminary surveys, are ready to follow us to other possible projects both in Moscow and in the regions. We have calculated several models for scaling the "Color" format, ranging from 3.5 to 6 thousand square meters. m., and we are looking at options for implementation.
Another growth opportunity is services. We are constantly adding new services for clients, strengthening our relationship with them. A purchase in a department store is, first of all, emotions that largely depend on the work of the operating personnel: this is an attitude, a smile, help in choosing, a bag with a ribbon, a wish for a good day. We try to make your purchase special, but as you know, there is no limit to perfection.