Arbat Prestige Missed Festal Days
The brand outflow from Arbat Prestige chain store commenced straight after the arrest of its co-owners Semen Mogilevich and Vladimir Nekrasov. According to the web, the revenues of retailer shed by over a third on year to $28.9 million in March, which is traditionally one of the most profit-yielding months in Russia. The Q1 sales narrowed by roughly 20 percent to $79.4 million.
Arbat Prestige posted revenues of $28.968 million in March vs $43.054 million generated a year earlier (down by 32.7 percent). The Q1 revenues lowered to $79.4 million, 22.3 percent down vs. the first quarter of 2007, according to the management report of retailer released via its web.
Once one of the leading perfumery and cosmetics chain stores of the country, Arbat Prestige has lost not only a portion of sales but also the brands since early this year. The number of brands has declined from 100 to 37 since January. In March of 2007, for instance, Arbat Prestige offered the product of such giants as Nivea (the revenues reached $980,000 that month, or 2.29 percent of the overall turnover), Hugo Boss ($950,000, or 2.22 percent), Garnier Skin Naturals ($860,000, or 2.01 percent) and Dolce & Gabbana ($630,000, 1.47 percent). None of them could be found in Arbat Prestige any longer.
The decline in revenues will continue, projected a top manager of competing chain store. “Similar to any other chain stores, the retailer used to take product on credit, while Arbat Prestige gets the product only after the advance payment of 100 percent nowadays,” he explained, adding that Arbat Prestige announced the shut-down of three stores in St. Petersburg exactly due to the lack of funding.
For Arbat Prestige, the bad time began straight after the arrest of its co-owners Semen Mogilevich and Vladimir Nekrasov. Quite a number of partners halted the shipments early this year. Arbat Prestige lost Nina Ricci, Paco Rabanne, Hugo Boss, Dolce & Gabbana, Moschino, Salvador Dali, Valentino, Max Factor that had been provided by United Europe. The retailer, however, managed to renew the relations with that supplier in March.
www.kommersant.com
All the Article in Russian as of May 05, 2008
|
