Shoe retailers noted sales growth in the New Year period and sluggish beginning of the year

December 2017 was fruitful for many companies. An unprecedented surge in sales in the New Year period in Russia was noted by Econika, Geox, Thomas Munz, Obuv Rossii, and the St. Petersburg shoe network Burgerschuhe.



The official report on the results of the 2017 year of the Obuv Rossii group of companies indicates a record increase in comparable sales in company stores: “In December Obuv Rossii recorded a record increase in comparable sales in the group’s stores (like-for-like) - by 30%, which is explained by the revival of demand. This was the first time since 2014. ” Other shoe retailers speak about the growth of sales in the New Year period. However, most of them are still cautious in their forecasts regarding the dynamics of consumer demand in the Russian market in 2018.



Burgerschuhe Retail Director Igor Lisitsyn:

“Everyone on the market revived due to a surge in sales in December, but somehow forgot about the drop in sales in November 2017. January we started quite smoothly, with a slight increase in sales compared to last January. In general, we are thinking about expanding our network, but so far we are approaching this very carefully, ”says Igor Lisitsyn, director of retail at Burgerschuhe.



Director of the Econika brand Alina Stepanova:

“Demand is always unstable. We saw some recovery in December and during the January holidays, but a short-term recovery was followed by a sharp drop in traffic. After the protracted crisis, people allowed themselves some spending on the New Year holidays, but since the total revenue did not increase, the New Year’s shopping rush led to the rapid emptying of wallets, and for the past week and a half we have seen how hard sales are going.
Econika is not a store where traditionally there is a great demand for New Year's gifts. People come to us for an “image” for celebrating the New Year, and this gives a small surge in sales in the New Year period. However, this year before the New Year, we saw a steady increase in sales at the level of 25-35% in comparison with the results of sales in the previous year's New Year period. Such growth was observed in all sales channels and across the country. Consumers showed interest in the New Year and the new spring collection, as well as in accessories - clutches and decorations, which they bought to create New Year's images and as a gift. So in December, we really recorded a good result for sales, one might even say that it is not quite typical for this period.
However, the beginning of the year was mixed. The first eight days we went with a good increase by last year, and were pleased with the results. And after the 10 number there was a sharp decline in demand, which continues to the current moment, and even intensifies. We assume that this is due to the limited budget of Russian consumers, the money was spent during the New Year period and during the holidays. Another factor affecting sales is the weather. When the snowy frost came, people began to spend more time outdoors, in nature, with children. In December, in the rain and slush, traffic in stores grew along with sales.




Geox Russia CEO Sergey Shuvalov:

After a slight drop in sales, which was the result of Black Friday and Cyber ​​Monday, in mid-December, the demand for traditional retail increased. In Geox stores, we noted a revival in the activity of our customers, especially on New Year's Eve. New Year's sales of GEOX shoes and clothes in our monobrand stores were 12% higher than expected. Sales in the New Year period, as well as in the first half of January, were higher compared to the same period last year.
At the beginning of the year, we also did not see a decline in sales. However, the priorities of our customers have shifted towards Geox outerwear. In the first half of January, all companies, including we sold the fall-winter'17 collections, however, a new spring Geox 2018 collection has already appeared in our stores, and it is already in demand.



Thomas Munz CEO Kirill Tsejinov:

“In general, we can note a slight revival of demand during the New Year holidays. We grew up in pairs and revenue. Despite the fact that an important factor, both for us and for the market, was the absence of winter weather in the usual view.
We are satisfied with the sales result and have gone through these months with an easy overfulfillment of the plan, but most importantly, the average margin has also grown, it amounted to 52.7%, which is 3,9% higher than the planned indicator.
The growth of comparable sales (like-for-like) in December amounted to + 36%; in January + 15%.

We have big plans for the 2018 year - the development of the network, the launch of a new retail concept, new collections, including in collaborations with other world manufacturers of shoes, as well as development in the segment
B2B. ”