Creation of the Detsky Mir Brand
The first Detsky Mir store was opened on 8 September 1947 in Moscow on Kirov Street (presently Myasnitskaya Street) as a branch of the Central Department Store (TSUM).
In 1957, the new Central Detsky Mir opened next to the Lubyanka Metro Station.
In 1992, the Moscow Government established JSC Detsky Mir, which owned and operated the Detsky Mir department store on Lubyanka Street in Moscow under the name Lubyanka Store Operator.
In 1994, PJSFC Sistema acquired a 43% stake in Lubyanka Store Operator, which at the time had no other stores under the same brand or using the “Detsky Mir” name.
Establishment of Detsky Mir Group
In 1997, PJSFC Sistema established OJSC Detsky Mir – Center, the predecessor of Detsky Mir Group, to manage its assets in the children’s retail market.
In the summer of 2000, Detsky Mir’s top management and PJSFC Sistema, a new shareholder, decided to build a national retail chain and Detsky Mir supermarkets began to spring up in cities across Russia.
2003 – 2012
In 2003, PJSFC Sistema approved a five-year plan for the development of the “Detsky Mir” retail chain.
In 2003-2007, 85 new stores opened in Russia. Over these years, the total retail space of the retail network has grown by about 145 thousand sq. m.
In 2007, the “Detsky Mir” trademark was registered, which is still in use.
In 2011, a subsidiary of “Detsky Mir” Group of Companies was established – “Detsky Mir – Kazakhstan” LLP. And in the same year, the first store opened in Kazakhstan (Astana).
In 2011, “Detsky Mir” launched a corporate online store (www.detmir.ru).
In 2012, “Detsky Mir” acquired 100% of the Cyprus company Sparthema Limited, which owns “Cube-Market” LLC, which is developing franchising stores in Russia from the British retail toy chain ELC.
New stage of development
In Decenber 2013, “Detsky Mir” Group of Companies launched the first store in a new retail concept. Which opened in the shopping center «MEGA Belaya Dacha». Supermarkets of the «Detsky Mir» network have become even more attractive and convenient for buyers, and interactive entertainment zones have appeared here, which were developed in collaboration with the world’s largest manufacturers of children’s goods.
In August 2014, in Moscow, on the site of the former Voentorg store, the flagmanship Detsky Mir store (10, Vozdvizhenka St.) was opened, which became the largest supermarket of children’s goods in the CIS. The store, which has an area of 7,000 sq.m., opened in the new retail concept, presents dozens of interactive zones.
In July 2015, Detsky Mir launched a new warehouse complex in Bekasovo. New distribution center with an area of 70,000 sq.m. became the largest specialized logistics terminal in Russia in the segment of children’s goods. The investment in the project amounted to more than 3 billion rubles. The opening of the distribution center allowed to ensure high rates of development of the retail network.
In December 2015, FLOETTE HOLDINGS LIMITED and EXARZO HOLDINGS LIMITED acquired from Sistema 23,1% of shares of Detsky Mir PJSC for 9,75 billion rubles.
In February 2016, ELC (Early Development Center) chain of stores began to cooperate with major online – supermarkets of the country. It has become possible to purchase products of the famous British brand ELC in online stores www.ozon.ru and www.wildberries.ru.
In 2017, Detsky Mir held a successful initial public offering (IPO) on the Moscow Stock Exchange, which was the first large-scale market transaction in Russia since 2014. The company entered the top twenty of the largest Russian retailers (17th place), and Forbes magazine included Detsky Mir in the golden hundred of the largest Russian companies.
In April 2017, Detsky Mir Group of Companies became the largest seller of children’s goods in online commerce in 2016, leaving behind leaders of 2015. In the ranking of the TOP-100 of the largest online projects in the country, the online store ranked 39th, rising by 29 points.
n 2018–2019, the Company opened ten pilot pet supplies stores under the Zoozavr brand.
In 2019, the Company entered the Belarusian market with eight Detmir stores.
In 2019, Detsky Mir launched the next-day and same-day delivery services from Detsky Mir stores.
In 2019, the Company’s major shareholder PJSFC Sistema and the Russia-China Investment Fund (RCIF) successfully priced the offering of 175 million existing shares in Detsky Mir, representing 23.7% of Detsky Mir’s issued share capital. As a result, the Company increased its free float to 57.6%, with PJSFC Sistema owning 33.4% in the Company, and RCIF 9.0%.
In November 2019, Detsky Mir launched the pilot version of a children’s fashion marketplace. As part of the pilot, the assortment was increased by 5,000 SKUs, taking into account the size range.
In November 2019, Detsky Mir launched the pilot of a full-feature mobile application, enabling customers to make purchases via the convenient online interface while using a virtual loyalty card.
Solidify leadership in the children’s goods retail
In February 2020, Detsky Mir launched Manu, a new private-label brand of diapers, in the children’s goods markets of Russia, Kazakhstan and Belarus.
In March 2020, the Company’s Board of Directors approved the early termination of appointment of Vladimir Chirakhov as the Company’s CEO, to be succeeded by Maria Davydova, Deputy CEO of Commercial Activities since 3 April 2020. Vladimir Chirakhov was elected as Chairman of the Board of Directors of PJSC Detsky Mir.
In March 2020, Detsky Mir was added to Russia’s list of systemically important companies.
In June 2020, the number of downloads of the Detsky Mir mobile application exceeded three million and more than 15 million application launches on mobile devices were recorded.
In June 2020, PJSFC Sistema (the majority shareholder of the Company) and the Russia-China Investment Fund (RCIF) successfully priced the offering of Detsky Mir shares. The offering size was 118 million existing shares in Detsky Mir, representing 15.9% of Detsky Mir’s issued share capital. The offering increased the Company’s free float to 75%-1 share. PJSFC Sistema has a remaining ownership interest of 20.38%, and RCIF has a remaining interest of 4.62% in the Company.
In July 2020, the Company launched its first regional distribution center in PNK Park Rostov-on-Don, a Class A+ industrial park developed by PNK Group. Detsky Mir leased 6,000 sq. m of warehousing space for seven years with the option to expand. The project’s CAPEX totals around RUB 100 m.
In August 2020, Detsky Mir presented a new Strategy. The Company’s management confirms its store opening guidance, with at least 300 stores in the Detsky Mir chain’s traditional format on the horizon in Russia, Kazakhstan and Belarus. The Group also plans to open 800 Detmir Pickup stores – our new compact store format – along with 500 Zoozavr pet supplies stores. Detsky Mir will continue to consolidate the children’s goods market via further rollout of its omni-channel business model, expansion of its geographical footprint, strengthening of its federal and regional logistical infrastructure, broadening of its assortment, also by means of development of its own marketplace, as well as by improving customer experience across channels.
In September 2020, Sistema and RCIF ceased to hold any ownership interest in the Company. Detsky Mir became the First Russian Company with 100% Free Float.
Expansion of the partner network of automated parcel lockers
In Q1 2021, Detsky Mir continued to expand its network of pickup points with new logistics partners through the handset retailer Svyaznoy, the logistics service SberLogistics and the TelePort chain of parcel lockers.
In April 2021, Detsky Mir launched delivery for online orders in 11 cities of Kazakhstan and next-day delivery in a number of cities.
Detsky Mir has become the first Russian company to sign up to ZHDC.