Eldorado is a trading network selling household appliances and electronics. The Eldorado retail chain is part of the M. Video-Eldorado Group (M.video PJSC), the largest Russian retail company that unites brands in the M.Video and Eldorado household appliances and electronics markets, as well as Marketplace Goods. The total annual revenue of companies exceeds 360 billion rubles with VAT. The M.Video-Eldorado Group is the only Russian company in the electronics retail sector whose shares are traded on the stock market. Currently, the company's shares are traded on the largest Russian exchange platform - the Moscow Exchange (ticker: MVID).
| El Dorado | |
|---|---|
| Type of | |
| Base | |
| Abolished | |
| Reason for Abolition | joining MVM LLC |
| Location |  Russia : Moscow |
| Key figures | Sergey Lee (Managing Director) [1] |
| Industry | retail trade ( ISIC :47 ) |
| Products | Household appliances and electronics |
| Turnover |
|
| Number of employees | About 50 thousand people |
| Parent company | M Video |
| Website | |
As of September 30, 2018, the Group unites 435 stores under the M.Video brand, 416 stores under the Eldorado brand, and 3 M_Mobile stores in more than 200 cities of the Russian Federation. The sales area of the Group’s stores is 1,292 thousand square meters, the total area is 1,706 thousand square meters.
The controlling shareholder of PJSC M.Video is PFG SAFMAR Mikhail Gutseriev, one of the largest industrial and financial groups in Russia. It includes oil producing and oil refining holdings, coal, potash companies, construction corporations, logistics and hotel complexes, shopping and office centers. SAFMAR Group also owns financial assets: insurance and leasing companies, non-state pension funds.
Eldorado is a five-time laureate of the Consumer Rights and Service Quality Award, three-time winner of the Brand No. 1 in Russia Award (2012, 2014, 2016), a four-time winner of the Best Russian Social Projects Award for the Utilization campaign (2013, 2016, 2017, 2018) and two-time winner of the Retail Week Awards (2017, 2018). The company became the winner of the CX World Awards 2018 in the nomination “Personalized Customer Experience”, the laureate of the program “Effective Business Education 2016” in the category “Best Program for the Development and Motivation of Employees”, as well as the winner of the Russian Retail Awards 2016, Customer Experience Awards Russia 2016 in Best Personalized Marketing nominations and Online Retail Russia Awards 2016 as the best online store in its segment.
Content
History
The company was established on September 1, 1994 (then the first store of the company was opened in Samara ) [3] . In early 2005, a European company, a major retailer of home appliances and electronics, Dixons Group plc. received the exclusive right to acquire a controlling stake in Eldorado until 2011 . Under the terms of the option , the price of a 100% stake in Eldorado was set at $ 1.9 billion [4] . In June 2007, it became known that DSG International refused to fulfill the option agreement [5] .
Since May 2005, the company has been developing its own network of mobile phone stores of the same name (480 mobile phone stores “Eldorado” at the beginning of 2009 ). It was planned to increase the number of stores to 490 by the end of 2009 [3] , but due to financial difficulties, the entire network of mobile phone stores was sold to MTS .
Initially, the sole owner of the company was the president of Eldorado Igor Yakovlev . In early 2008, tax authorities presented one of the legal entities “Eldorado” with tax claims totaling almost 15 billion rubles [6] . After that, the company’s creditor banks demanded early repayment of loans in the amount of $ 400 million, and suppliers stopped supplying goods, but the Czech PPF group provided a loan of $ 500 million [6] . In September 2008, Yakovlev got rid of a controlling stake in Eldorado by selling a 39% stake in the group to PPF, and 11% to the Italian insurance group Assicurazioni Generali for about $ 400-800 million [7] [8] . In December 2010, PPF bought back a stake in an Italian company for 46 million euros. In August 2011, a Czech company bought back the remains of Eldorado from its founder, having paid $ 625 million for 50% minus 1 share of the network [9] .
In July 2013, the M.Video network received permission from the Federal Antimonopoly Service to purchase Eldorado from PPF, but with restrictions on the dominance of the combined network in a number of regions [10] [11] . Negotiations began in December 2016 , and in April 2017 M.Video and Eldorado were bought by the Safmar financial group. [12] .
In March 2018, M.Video announced the purchase of the Eldorado network. In April of that year, the deal was completed [13] .
In February 2019, Eldorado LLC was reorganized in the form of a merger with MVM LLC (operating company of the M.Video network) and ceased to exist.
Activities
At the beginning of April 2013, the Eldorado network included 396 own stores and 42 points of ordering and delivery of goods, as well as about 300 more franchising outlets [10] . At the beginning of 2013, Eldorado stores operated in more than 450 cities of Russia [14] .
In 2012, the chain opened 58 new stores. At the end of 2012, the total number of Eldorado stores was 404 hypermarkets in 173 cities of the Russian Federation [15] .
In 2010, Eldorado began recycling household appliances and electronics in exchange for purchasing goods in chain stores [16] ; in 2010-2012, more than 1 million units of household appliances were disposed of [17] .
Financial Performance
In 2016, retail sales increased by 11.0%, amounting to 130 billion rubles (including VAT) [18] .
In 2015, retail sales amounted to 117.490 billion rubles (including VAT) [18] .
In 2014, retail sales grew by 16.2%, reaching 131.7 billion rubles (including VAT) [18] .
In 2013, retail sales of the Eldorado chain amounted to 113.5 billion rubles (including VAT) - 0.9% more compared to 2012 [18] .
In 2012, retail sales of the Eldorado network amounted to 112.423 billion rubles. (including VAT) - by 15.3% more compared to 2011 [15] .
The volume of investments in network development in 2011 doubled compared to 2010 and amounted to about $ 100 million [19] At the same time, EBITDA amounted to 5.1 billion rubles (6.1%) [19] .
2010 - the turnover of 97.8 billion rubles [19] .
2009 - the network’s turnover amounted to 89 billion rubles [20] , or $ 2.8 billion [21] .
2008 - $ 5 billion [22] .
2007 - $ 6 billion [23] .
Elenberg
Elenberg - originally a “pocket” brand (private label) of the Eldorado distribution network [24] . In fact, goods are produced in China and Turkey by various plants [25] and then collected in Kaliningrad by Radioimport-R LLC [26] , Telebalt [27] and other enterprises. According to 2006 data , Elenberg accounted for about 10% of Eldorado sales [28] , in 2008 - 8% [29] .
Notes
- ↑ Eldorado has new top managers
- ↑ Rating of the largest Russian companies by sales volume - Expert RA .
- ↑ 1 2 About the company on the official website
- ↑ “Option for Eldorado.” "Expert", No. 15 (462) (April 18, 2005) . Date of treatment January 3, 2007. Archived January 3, 2007.
- ↑ DSG changed her mind. The British retailer will not buy Eldorado // Vedomosti , No. 112 (1886), June 21, 2007.
- ↑ 1 2 Tatyana Romanova, Alexey Rozhkov. Affiliate transaction (inaccessible link) . // Vedomosti , No. 107 (2873), 06/15/2011. Date of treatment June 16, 2011. Archived January 26, 2012.
- ↑ Alexey Rozhkov, Elena Vinogradova . How to buy "Eldorado" // Vedomosti , No. 212 (2482), 10.11.2009.
- ↑ Tatyana Romanova, Alexey Rozhkov . "Eldorado" is divided // Vedomosti , No. 170 (2192), 09/10/2008.
- ↑ Margarita Fedorova, Julia Lokshina, Kristina Busko. Igor Yakovlev said goodbye to Eldorado (inaccessible link) . // Kommersant , No. 154 / P (4695), 08/22/2011. Date of treatment August 22, 2011. Archived August 22, 2011.
- ↑ 1 2 Pavel Belavin, Evgenia Pertseva. Merger on household soil . // Kommersant , No. 68 (5099), 04/18/2013. Date of treatment July 18, 2013.
- ↑ FAS allowed the merger of M.Video and Eldorado (inaccessible link) . // gazeta.ru. Date of treatment July 18, 2013. Archived July 21, 2013.
- ↑ Anastasia Dulenkova, Anatoly Kostyrev. Safmar closed a deal to buy M. Video // Kommersant. - 2017-04-28.
- ↑ M. Video completed the purchase of Eldorado // Lenta.ru. - 2016-12-14.
- ↑ PPF GGroup: Eldorado is Russia's largest retail chain of electronics and household appliances
- ↑ 1 2 Eldorado retail sales in 2012 increased by 15.3% to 112.423 billion rubles.
- ↑ Eldorado calls for the proper disposal of old equipment
- ↑ Eldorado reports on a new wave of “recycling”
- ↑ 1 2 3 4 Business indicators . www.eldorado.ru. Date accessed August 20, 2018.
- ↑ 1 2 3 . Eldorado Announces 2010–2011 Financial Results
- ↑ Large "scam" in small print from Eldorado LLC
- ↑ Key Derivative Indicators of the Dynamics of the Ruble Exchange Rate in January-December 2009
- ↑ Eldorado in 2008 reduced its turnover by 17% to $ 5 billion.
- ↑ Tatyana Romanova . Igor Yakovlev, president of Eldorado: “To become an international corporation is our goal” // Vedomosti , No. 24 (2046), 02/11/2008.
- ↑ RBC Daily :: Daily Business Newspaper . Date of treatment November 18, 2007. Archived November 18, 2007.
- ↑ Fairy tale on the cheap // Truth of the North-West, 02/08/06 (30)
- ↑ Eldorado // ASmedia.ru, April 2, 2007
- ↑ Own brand
- ↑ Alien science, own technology
- ↑ Eldorado launches sales of hi-fi equipment under its own brand Cameron