Russian food retailer O’KEY Group S.A. appoints Tariel Bokuchava as its new Director of Information Technologies

MOSCOW, Russia, 2017-Jul-15 — /EPR Retail News/ — O’KEY Group S.A. (LSE: OKEY, the “Group”), one of the leading Russian food retailers, announces the appointment of Tariel Bokuchava as its new Director of Information Technologies.

All materials published by the Group are available on its website www.okeyinvestors.ru.

Mr. Bokuchava is succeeding Nikolay Zatravin from July 2017. In the role of Information Technologies Director, Mr. Bokuchava will be primarily focused on modernization and improvement of IT system processes and infrastructure.

Tariel Bokuchava, 37, has a broad experience in IT industry. Since 2015, he has been IT Support & Operations Director of X5 Retail Group, where he was responsible for improvement of IT services stability, acceleration of IT capacity management routines and optimization of incident management. Prior to that,  Mr. Bokuchava held various executive positions at the X5 Retail Group IT department, overseeing IT projects related to office operations and business transformation. Up to 2013, he was managing a business application department at “Mars” LLC. Mr. Bokuchava holds degree in Computational Mathematics and Computer Science from the Moscow State University. He speaks Russian and English.

Miodrag Borojević, Chief Executive Officer of O’KEY Group, said:
“We are pleased to welcome Tariel Bokuchava to the management team. With the constantly evolving retail market and strong competition, we strive to be at the cutting edge of modern technologies in our business. I am confident that modernization and automation of IT infrastructure, backed by Tariel’s level of expertise, will enable us to be fast and efficient in delivering our strategic initiatives.”

Tariel Bokuchava commented:
“I am delighted to be joining O’KEY Group at a time of strategic transformation. I look forward to realizing the significant opportunities available to us. I believe that the new strategic course set by the management aimed at processes optimization and modernization is essential for any business with ambitions of market leadership. I look forward to implementing and streamlining high-end IT solutions for the overall benefit of O’KEY Group.

COMPANY OVERVIEW
O’KEY is one of the largest retail chains in Russia. Its primary retail format is the modern Western European style hypermarket which operates under the “O’KEY” brand, complemented by O’KEY supermarkets. The Group is developing an innovative discounter format under the “DA!” brand. O’KEY is the first among Russian food retailers to launch e-commerce operations in St. Petersburg and Moscow, based on its hypermarket assortment.

The Group opened its first hypermarket in St. Petersburg in 2002 and has since demonstrated continuous growth. As of July 10, 2017, O’KEY operates 109 stores across Russia – 72 hypermarkets, 37 supermarkets and 55 discounters under the “DA!” brand.

Disclaimer
These materials contain statements about future events and expectations that are forward-looking statements. These statements typically contain words such as “expects” and “anticipates” and words of similar import. Any statement in these materials that is not a statement of historical fact is a forward-looking statement that involves known and unknown risks, uncertainties and other factors which may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. None of the future projections, expectations, estimates or prospects in this announcement should be taken as forecasts or promises nor should they be taken as implying any indication, assurance or guarantee that the assumptions on which such future projections, expectations, estimates or prospects have been prepared are correct or exhaustive or, in the case of the assumptions, fully stated in this announcement. We assume no obligations to update the forward-looking statements contained herein to reflect actual results, changes in assumptions or changes in factors affecting these statements.

For further information please contact:
Veronika Kryachko
Head of Investor Relations
+7 495 663 6677 ext. 404
Veronika.Kryachko@okmarket.ru
www.okeyinvestors.ru

Source: O’KEY Group

RUSSIA: O’KEY Group and Familia announce strategic partnership

MOSCOW, Russia, 2017-Jul-12 — /EPR Retail News/ — O’KEY Group S.A. (LSE: OKEY, the “Group”), one of the leading Russian food retailers, and Familia, the leading off-price retailer in Russia, announce a strategic partnership. All the materials published by the Group are available on its website www.okeyinvestors.ru.

As part of the strategic partnership, Familia will open stores in 2 of O’KEY’s hypermarkets – Ekaterinburg and Tyumen in the second half of this year. The cooperation will also involve joint marketing campaigns and other activities. This partnership is likely to be extended to further O’KEY stores in other locations from
next year.

This project is part of O’KEY’s ongoing strategic initiative to enhance efficiency through the creation of a “compact hypermarket”. This is achieved through leasing selling space to a strategic partner without decreasing the total number of SKUs in the store. It is expected to result in customer traffic growth and additional rent income, increasing profitability.

Miodrag Borojević, Chief Executive Officer of O’KEY Group, said:
“We are pleased to announce our partnership with Familia, a leading off-price retailer in Russia. This contract marks the start of a long-term strategic relationship which will boost the efficiency of ou hypermarkets by attracting additional traffic and selling space optimization.”

Konstantin Nadezhdin, Chief Executive Officer of Familia, commented:
”This partnership with O’KEY is a key milestone for our company. The agreement should generate additional traffic both for our stores and the hypermarkets in which they are based. We are confident that this cooperation will further strengthen our position as a leading off-price retailer in the Russian market.”

COMPANY OVERVIEW
O’KEY is one of the largest retail chains in Russia. Its primary retail format is the modern Western European style hypermarket which operates under the “O’KEY” brand, complemented by O’KEY supermarkets. The Group is developing an innovative discounter format under the “DA!” brand. O’KEY is the first among Russian food retailers to launch e-commerce operations in St. Petersburg and Moscow,
based on its hypermarket assortment.

The Group opened its first hypermarket in St. Petersburg in 2002 and has since demonstrated continuous growth. As of July 10, 2017, O’KEY operates 109 stores across Russia – 72 hypermarkets, 37 supermarkets and 55 discounters under the “DA!” brand.

FAMILIA, the first and single off-price retail chain in Russia.
Famila is the leading off-price retailer in Russia. Its first store was opened in 2000 in Moscow. During 2016-17, Familia increased its number of stores by more than 150%. At present, Familia runs 169 stores in 64 cities across Russia, with a trade area of over 200,000 m2. By the end of 2017, Familia plans to run 195-200 stores. More than 2,700 brands from 40 countries are partnered with the company. All materials published by the company are available on its website http://www.famil.ru/en/partnership/
Company profile: http://www.famil.ru/data/presentation_en.pdf

Disclaimer
These materials contain statements about future events and expectations that are forward-looking statements. These statements typically contain words such as “expects” and “anticipates” and words of similar import. Any statement in these materials that is not a statement of historical fact is a forward-looking statement that involves known and unknown risks, uncertainties and other factors which may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. None of the future projections, expectations, estimates or prospects in this announcement should be taken as forecasts or promises nor should they be taken as implying any indication, assurance or guarantee that the assumptions on which such future projections, expectations, estimates or prospects have been prepared are correct or exhaustive or, in the case of the assumptions, fully stated in this announcement. We assume no obligations to update the forward-looking statements contained herein to reflect actual results, changes in assumptions or changes in factors affecting these statements.

For further information please contact:
Veronika Kryachko
Head of Investor Relations
+7 495 663 6677 ext. 404
Veronika.Kryachko@okmarket.ru
www.okeyinvestors.ru

Source: O’KEY Group

O’KEY Group names Ivan Dropuljic as Commercial Operations Director, hypermarket and supermarket business

MOSCOW, Russia, 2017-Jul-11 — /EPR Retail News/ — O’KEY Group S.A. (LSE: OKEY, the “Group”), one of the leading Russian food retailers, announces the appointment of Ivan Dropuljic as Commercial Operations Director for the hypermarket and supermarket business.

All materials published by the Group are available on its website www.okeyinvestors.ru.

In the role of Commercial Operations Director, Mr. Dropuljic will combine under his management the Commercial Department of the hypermarket and supermarket business, Marketing, Space Management and Quality Control. Mr. Dropuljic is expected to commence his work upon receipt of all the necessary work permission documents. In his new role, he will be primarily focused on strategic and trade marketing, standardization and optimization of portfolio assortment and quality control, to support O’KEY’s strategic transition towards the compact hypermarket format.

Ivan Dropuljic, 37, has a long track record in the food retail industry. Since 2012, he has been Purchasing and Marketing Director and Member of the Board of Kaufland Croatia, one of the leading hypermarket chains in Europe (part of Schwartz Group, a grocery retailer with more than US$100bn in revenues), where during the last two years he was responsible for diverse international projects. Prior to that, he worked as Fresh Food Director at Kaufland Croatia where he achieved success in purchasing process optimization, which enabled the company to double its sales. Prior to that, up to 2007, Mr. Dropuljic held various positions at Pik Vrbovec and Jamnica. Mr. Dropuljic holds an MA degree in Economics from the University of Zagreb. He speaks Croatian, English, German, and Polish.

Miodrag Borojević, Chief Executive Officer of O’KEY Group, said:
“We are pleased to welcome Ivan Dropuljic to the management team. The Russian market is characterized by strong competition and high pace of growth which are driving our strategic transition. I strongly believe that optimization of processes and focus on the key aspects of our business, which Ivan will play a key role in, will enable us to complete our strategic transition in a timely manner and become a trendsetter in our market.”

Ivan Dropuljic commented:
“I am very excited to be joining O’KEY Group. I see enormous potential for the Company’s future business development given its unique customer value proposition and strong team of retail professionals. I believe that standardization of assortment portfolio and marketing mix, along with the modern and efficient supply chain, will enable us to meet the needs of existing customers and increase traffic across our retail chain.

COMPANY OVERVIEW
O’KEY is one of the largest retail chains in Russia. Its primary retail format is the modern Western European style hypermarket which operates under the “O’KEY” brand, complemented by O’KEY supermarkets. The Group is developing an innovative discounter format under the “DA!” brand. O’KEY is the first among Russian food retailers to launch e-commerce operations in St. Petersburg and Moscow,
based on its hypermarket assortment.

The Group opened its first hypermarket in St. Petersburg in 2002 and has since demonstrated continuous growth. As of July 10, 2017, O’KEY operates 109 stores across Russia – 72 hypermarkets, 37 supermarkets and 55 discounters under the “DA!” brand.

Disclaimer
These materials contain statements about future events and expectations that are forward-looking statements. These statements typically contain words such as “expects” and “anticipates” and words of similar import. Any statement in these materials that is not a statement of historical fact is a forward-looking statement that involves known and unknown risks, uncertainties and other factors which may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. None of the future projections, expectations, estimates or prospects in this announcement should be taken as forecasts or promises nor should they be taken as implying any indication, assurance or guarantee that the assumptions on which such future projections, expectations, estimates or prospects have been prepared are correct or exhaustive or, in the case of the assumptions, fully stated in this announcement. We assume no obligations to update the forward-looking statements contained herein to reflect actual results, changes in assumptions or changes in factors affecting these statements.

For further information please contact:
Veronika Kryachko
Head of Investor Relations
+7 495 663 6677 ext. 404
Veronika.Kryachko@okmarket.ru
www.okeyinvestors.ru

Source: O’KEY Group

O’KEY Group names Miodrag Borojevic as its new CEO of hypermarket and supermarket business

MOSCOW, Russia, 2017-Mar-24 — /EPR Retail News/ — O’KEY Group (LSE: OKEY), one of the leading food retailers in Russia, today (22 March 2017) announced the appointment of Miodrag Borojevic as its new Chief Executive Officer of hypermarket and supermarket business. He will be succeeding Heigo Kera from May 2017. The Board of Directors would like to thank Mr. Kera for his distinguished service and tremendous contributions to O’KEY Group, where his leadership, experience and dedication led the company through a challenging macroeconomic and competitive environment, and laid down a solid foundation for O’KEY’s compelling business development strategy and growth prospects. Mr. Kera will hand over the CEO responsibilities by June to ensure smooth transition of responsibilities with Mr. Borojevic, and will continue to serve as Chairman of the O’KEY Group S.A. Board.

Miodrag Borojevic’s Biography

Mr. Borojevic, 48, has in-depth industry expertise in food retail industry. Since 2013, he has been Chief Executive Officer of REWE Italy, where he has achieved strong success in executing a business turnaround. Prior to that, from 2002 to 2013 Mr. Borojevic held various executive positions at Kaufland, one of the leading hypermarket chains in Europe (part of Schwarz Group, a grocery retailer with more than US$100bn in revenues), overseeing its operations in Romania, Croatia, Bulgaria, Slovakia and the Czech Republic. Mr. Borojevic speaks English, Italian, Russian, German, Croatian and Bulgarian.

Heigo Kera, CEO and Chairman of the Board of Directors of O’KEY Group, said: “After two years of leading the company through difficult times and achieving the goals set by the board, I feel it is the right time for me to step down. During this time we strengthened the competitive position of our hypermarket and supermarket business, launched important strategic projects, improved the price perception of the O’KEY brand, adapting commercial policies to meet macroeconomic challenges, enhancing in-store shopping concept to make better experience of our customers and introducing the new compact city hypermarket concept. We have built a strong team of dedicated retail professionals which I have enjoyed working with in this challenging environment. I remain a strong believer in O’KEY’s unique business model and customer value proposition which would help it to take advantage of market opportunities to drive growth while maintaining high operational effectiveness.”

Miodrag Borojevic commented: “I am delighted to accept the offer to lead hypermarket and supermarket business of O’KEY Group. I strongly believe in the significant potential for further growth of O’KEY’s business, and see tremendous opportunity to add value for our customers, employees and shareholders in years to come. I look forward to communicating and executing our team’s exciting vision and strategy for the next stage of O’KEY business.”

COMPANY OVERVIEW

O’KEY is one of the largest retail chains in Russia. Its primary retail format is the modern Western European style hypermarket under the “O’KEY” brand reinforced by O’KEY supermarket. The Group is developing the innovative discounter format under the “DA!” brand. O’KEY is the first among Russian food retailers to launch e-commerce operations in St. Petersburg and Moscow based on hypermarket assortment. The Group opened its first hypermarket in St. Petersburg in 2002 and has demonstrated continuous growth ever since. As of March 22, 2017, O’KEY operates 164 stores across Russia – 74 hypermarkets, 36 supermarkets and 54 discounters.

Investor Relations:

e-mail: ir@okmarket.ru www.okeyinvestors.ru

Source: O’KEY Group

O’KEY Group announces the appointment of Milina Sevcikova Mikulova as Private Label Commercial Director

MOSCOW, Russia, 2016-Sep-16 — /EPR Retail News/ — O’KEY Group S.A. (LSE: OKEY), one of the largest food retailers in Russia, announces the appointment of Milina Sevcikova Mikulova as Private Label Commercial Director reporting directly to the Company’s CEO Heigo Kera.

The new Commercial Director will be developing and implementing the Group’s private label strategy for supermarkets and hypermarkets. In her role, Milina will manage assortment, production, supply, pricing, positioning, promotion of the O’KEY private labels and control marginality of this business.

Her top priority is to improve quality of the O’KEY private label products by auditing production facilities and testing samples in independent accredited laboratories.

The Company started the private label relaunch project last year covering mainly the food categories. The first step was to launch the That’s What You Need! brand (November 2015) in the low price tier followed by an O’KEY line-up in the middle price segment (April 2016). Currently there are 1,000+ SKUs under both brands.

Mr. Heigo Kera, the Chairman of the Board and the Group CEO, commented: “Last year we gave a new life to our private label business, which is one of the key elements of our Commercial Policy aimed at growing our margin in this segment and maintaining traffic by offering the best value for money proposition to our customers.

Our plan is to increase the share of private labels to 10% of the total sales in the coming year, including non-food categories. Given the importance of this business and our ambitions, we decided to have this block reporting to a separate Commercial Director.

Milina and her team will work closely with the DA! discounters to enable synergies in design, ordering and promotion of certain products.”

Milina Sevcikova Mikulova has a proven commercial, marketing and project management track record in Russia, Eastern Europe and Africa. Born in Czechoslovakia, she started her career at Carrefour in 1998 when she was involved in the opening of the retailer’s first hypermarket in Eastern Europe. From 2000 to 2004, she worked at AHOLD, the largest retail chain in the Czech Republic, making her way from Buying Manager to Commercial Director for the Czech Republic, Slovakia and Poland. Later she joined Metro Group to support the expansion of the Real chain in Romania as Commercial Director for Food. From 2005 to 2009, Milina served as Commercial Director & Management Board Member at Lenta. In recent years, she held various executive positions at Metrika (DIY), Yoo! Mart Ltd (Ghana, Africa) and 585 Gold.

Milina graduated from the University of Economics in Prague (International Relations) and holds a degree from the Commerce & Management School (l’ECG) in Orleans (France).

COMPANY OVERVIEW
O’KEY is one of the largest retail chains in Russia. Its primary retail format is the modern Western European style hypermarket under the “O’KEY” brand reinforced by O’KEY supermarket. The Group is developing the innovative discounter format under the “DA!” brand. O’KEY is the first among Russian food retailers to launch e-commerce operations in St. Petersburg and Moscow based on hypermarket assortment.

The Group opened its first hypermarket in St. Petersburg in 2002 and has demonstrated continuous growth ever since. As of September 15, 2016, O’KEY operates 159 stores across Russia – 73 hypermarkets, 37 supermarkets and 49 discounters.

For further information please contact:
Investor Relations e-mail: ir@okmarket.ru www.okeyinvestors.ru

Source: O’KEY Group

Food retailer O’KEY Group H1 2016: net retail revenue increased by 10.1% YoY

Moscow, 2016-Jul-22 — /EPR Retail News/ — O’KEY Group S.A. (LSE: OKEY), one of the largest food retailers in Russia, announces operating results for the Second Quarter and the First Half of 2016. All materials published by the Group are available on its website www.okeyinvestors.ru.

Key highlights for Q2 2016:

 Group net retail revenue increased by 5.8% y-o-y from RUB 37,608 million to RUB 39,825 million
 Traffic increased 11.3% y-o-y with average ticket declining 5.0% y-o-y  Trade LFL revenue increased 2.3% y-o-y while LFL traffic grew 4.1% and average LFL ticket declined 1.8%
 Retail revenue net of sales in the discounter chain grew by 2.4% to RUB 38,559 million
 Traffic net of discounters rose 3.7% y-o-y with average ticket net of discounters declining 1.3% y-o-y
 In Q2 2016, the Group opened one hypermarket and 7 discounters
 Total selling area increased by 6.4% to 602,208 m2 , selling area of hypermarkets increased by 1.7% to 521,068 m2, selling area of supermarkets declined by 9.9% to 48,457 m2 and selling area of discounters reached 32,683 m2

Key highlights for H1 2016:

 Group net retail revenue increased by 10.1% y-o-y from RUB 74,880 million to RUB 82,412 million
 Traffic increased 12.6% y-o-y with average ticket declining 2.3% y-o-y
 Trade LFL revenue increased 5.5% y-o-y while LFL traffic grew 4.5% and average LFL ticket rose by 1.0%
 Retail revenue net of sales in the discounter chain rose by 7.1% to RUB 80,191 million
 Traffic net of discounters rose 5.8% y-o-y with average ticket net of discounters growing 1.2% y-o-y
 In H1 2016, the Group opened one supermarket (closed four supermarkets), opened one hypermarket (closed one) and added 13 discounter stores

Commentary

Heigo Kera, CEO and Chairman of the Board of Directors of O’KEY Group, said,
In Q2 2016, we demonstrated solid growth of the key operating indicators in spite of the weak macroeconomic environment and intensifying competitive pressure. We delivered strong LFL growth driven by sustained increase in traffic as our customers increasingly appreciate the recent changes in the sales mix, enhanced assortment and more appealing value proposition. However, the average ticket declined as trading down among our customer base continued while food inflation slowed down.

In H2 2016, we will continue to maintain competitive pricing and further improve our value proposition. We continue development of our food private labels and plan to add overall 200-300 SKUs to our That’s What You Need and O’KEY lines. We are also redesigning and relaunching our non-food private labels with increased focus on product quality. In Q3 we will open two more hypermarkets (in Moscow and Tyumen) with elements of a new store concept, a more modern look and feel, new approaches to organization and zoning of the floor space and easier navigation».

Armin Burger, Chief Executive of the Discounter Chain, added,
During the quarter, we continued expansion of our discounter chain the DA! brand, having opened 7 additional stores in Moscow and neighboring regions. We are seeing steady increase in customer traffic adjusted for seasonal trends. In Q2 2016, my team continued to enhance assortment, adding more private label items across all categories, and worked on improving organisation of the floor space. Overall, the hard discounter project is finding its target audience, the rational customers appreciating value-for-money we are offering in our chain».

Revenue
In Q2 2016, net retail revenue increased 5.8% y-o-y to RUB 39,825 million primarily driven by strong improvement in traffic as a result of the Company’s focus on enhancing value proposition, rebalancing assortment, changing the sales mix, as well as the growing contribution from discounter stores.

In Q2 2016, LFL sales grew 2.3% as a result of the 4.1% improvement in LFL traffic and in spite of the 1.8% decline in LFL ticket as consumer purchasing power remains under pressure in a tough macroeconomic environment. May results were impacted by 2016 holidays calendar as Easter coincided with Spring and Labor Day, as well as unusually hot weather in the North-West region resulting in lower consumer spending in big cities compared to May 2015. In June, the Group delivered much stronger results though growing from higher base as June 2015 numbers already reflect the impact of the turnaround initiatives which management of the Group introduced a year ago.

Additional information
The Group will report its First Half 2016 Reviewed Operating and Financial Results on 17 August 2016. Management of the Group will be holding a conference call to provide an update and discuss the results.

Disclaimer
These materials contain statements about future events and expectations that are forward-looking statements. These statements typically contain words such as “expects” and “anticipates” and words of similar import. Any statement in these materials that is not a statement of historical fact is a forward-looking statement that involves known and unknown risks, uncertainties and other factors which may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. None of the future projections, expectations, estimates or prospects in this announcement should be taken as forecasts or promises nor should they be taken as implying any indication, assurance or guarantee that the assumptions on which such future projections, expectations, estimates or prospects have been prepared are correct or exhaustive or, in the case of the assumptions, fully stated in this announcement. We assume no obligations to update the forward-looking statements contained herein to reflect actual results, changes in assumptions or changes in factors affecting these statements.

COMPANY OVERVIEW
O’KEY is one of the largest retail chains in Russia. Its primary retail format is the modern Western European style hypermarket under the “O’KEY” brand reinforced by O’KEY supermarket. The Group is developing the innovative discounter format under the “DA!” brand. O’KEY is the first among Russian food retailers to launch e-commerce operations in St. Petersburg and Moscow based on hypermarket assortment.

The Group opened its first hypermarket in St. Petersburg in 2002 and has demonstrated continuous growth ever since. As of 20 July 2016, O’KEY operates 157 stores across Russia: 71 hypermarkets, 37 supermarkets and 49 discounters.

For further information please contact:
Nikolay Minashin
Head of Investor Relations
Ph. +7(495)663-6677, ext. 127
e-mail: Nikolay.Minashin@okmarket.ru www.okeyinvestors.ru

Source: O’key Group