One of the largest Russian shoe retailers Carlo Pazolini closed its retail network in the United States, consisting of 14 stores and bringing companies, according to analysts, 7% turnover.
“At the end of that year it became clear that all investment projects should be frozen,” says Ilya Reznik. “In the US, we needed to invest at least two more years to bring the branch to operating profitability.” Last year, when Russian companies almost completely lost access to the international financial market, and the devaluation of the ruble against the dollar was almost 100%, it became impractical to invest in large-scale projects, the businessman explains.
Now in the USA only the Carlo Pazolini online store will continue to operate. Ilya Reznik hopes to return to development in the United States in a few years, possibly in 2018, if the situation in the Russian economy stabilizes in the coming years.
Recall that GK Carlo Pazolini was founded in 1991 by Ilya Reznik and has about 230 of its own and franchised stores in Russia, Ukraine, Italy, the UK and other countries. Shoes under the Carlo Pazolini brand are produced in contract manufacturing in China (about 75% of production) and Italy. According to Euromonitor, in 2013 in the Russian shoe market Carlo Pazolini took fourth place in sales with a share of 1,4%.