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Our retail strategy is to create the largest and most efficient children’s retail network across Russia and the CIS. We also seek to continue expanding our presence in Russia, in order to take advantage of limited competition in large children’s retail stores nationwide, by opening a number of new Detsky Mir retail outlets in Moscow and other large cities across Russia and the CIS. We plan to continue offering a wide range of children’s toys, maternity and nursery goods, clothing and footwear, and stationery and sporting goods targeted at middle-income consumers. We also plan to increase the share of our larger stores portfolio, such as hypermarkets. All our outlets have 3 retail formats. We have centralized marketing, assortment planning and selection, purchasing, merchandising, human resources and logistics activities for all of our stores.
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