Online Business Development

Our online business remains one of the key growth area. Internet sales continued to gain a bigger share in total sales (2.1%) growing noticeably (90%) in 2011. If we look at the internet as “only Moscow” then the numbers are more impressive as Internet was greater than 10% of all Moscow revenues.

The accelerating growth of our online sales in 2011 led to the increase of home delivery services by 71% as compared to 2010. While we measured the quality of the outsourced delivery services the share of satisfied customers increased to 98% in 2011.

The market itself remains highly competitive. As prices constantly reduce in other internet shops, our main focus in on keeping the customers informed about our promo activities, special prices and exclusive models. We benchmark ourselves versus the online stores with the similar product mix as well as versus the major Russian search engine called Yandex Market which provides products’ price and availability comparison in the Russian Internet.

Our gains in internet are due to improvements and developments in an active marketing, site usability and extension of available assortment which led to the increase in the number of transactions in the channel. We also widely increase the share of social media in our communications with customers via opening an online store in Facebook and developing downloadable applications for Apple iPhone, Android and Windows Mobile platforms. Those last two initiatives also helps us to attract additional customers to our stores.

Our online channel is a driver of changes towards our omni-channel selling approach. The Omni-channel strives to be one seamless experience regardless of which channel you with to use to be informed on the products, shop for products or buy products. The customer should get the same experience online and offline. We feel confident in our Moscow model and are currently looking forward to rollout our Omni-channel into the regions.