The high street retail giant, made 42.7 billion roubles ($578 million) in the first nine months of 2021, an increase of 40 percent compared to the same period last year, the company said in a statement.
In the first nine months, Gloria Jeans’ retail network totalled 635 stores and its retail space increased by 8.2 percent, year-on-year. On the e-commerce front, the company hopes to increase online sales 250 percent — to 5 billion roubles ($67 million) — by the end of this year, which would represent approximately 9 percent of its total revenue.
Company founder, Vladimir Melnikov, has said its goal in the coming years is to bring the share of online sales to 30 percent of total revenue. With that goal in mind, Gloria Jeans has begun cooperating with leading local e-commerce platforms, including Wildberries and Lamoda, and is developing its own online retail channels.
Gloria Jeans also announced an investment of 5 billion roubles ($67 million) in a new 50,000-square-metre logistics complex in the Moscow region it hopes will help lower the processing costs of e-commerce orders and increase the speed at which it can deliver those orders.
With Wildberries racing to become Russia’s answer to Amazon, many brands are turning to devoted fashion platforms like Lamoda.ru and Aizel.ru but the local e-commerce market poses many challenges.