Westfalika-owner OR Group said Covid-19 restrictions had impacted in-store footfall. Shutterstock.
OR Group, owner of several fashion brands as well as rising Russian e-commerce marketplace Westfalika, reported consolidated unaudited revenues of 6.37 billion roubles ($89 million) in the first nine months of 2021, a year-on-year decrease of 9 percent.
The decrease was attributed to lockdown restrictions hindering footfall in stores, though the revenue of its Westfalika online marketplace doubled over this nine month period, reaching 1.4 billion roubles ($19.5 million).
Company chief executive, Anton Titov, said he expects a recovery of footfall for its network of stores in the medium term, while online sales continue to grow thanks to an expansion of assortment, improvement of logistics and the development of new channels.
OR Group was founded in 2003 in Novosibirsk and was formerly known as Obuv Rossii before changing its name at the end of 2020. As well as the Westfalika platform, the company also owns several fashion brands, including Westfalika, Peshechod, Emilia Estra, Rossita and Lisette. It operates a total of 805 stores in 319 cities around Russia.
The company previously said it expects e-commerce sales to make up 30 percent of its total revenues by the end of this year and has inked deals with e-commerce giants such as Wildberries and AliExpress, as well as developing its own e-commerce, in order to reach new customers.
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.