Why does "CenterObuv" close stores in Russia? Why closed "CenterObuv" in Moscow, in Tomsk, in Yekaterinburg?

As early as 2015-2016. Many buyers were concerned that the economy-class footwear market was steadily declining. Most of all our compatriots were excited by the question: "Why does CenterObuv" close stores in Russia? " In this article we will try to give a detailed exhaustive answer.

"CenterObway": brief information

So, because of what is so great interest in this trading company? "TsentrObuv" was considered the largest in Russia network for the sale of footwear and accessories. The corporation operates under two brands - Centro and TsentrObuv. According to official information, it is registered with Plazia Consulting Ltd, located in Cyprus, which owns 99.9% of the shares. It should be noted that the shareholders of TsentrObuvi are also Russians - Dmitry Svetlov and Anatoly Gurevich. These citizens own 0.06% and 0.14% of securities, respectively.

The company was opened in 1992. In 2011, it expanded to 598 stores in TsentrObuvi and 148 Centro points. They brought to the owners an annual profit of 30 billion rubles. And in 2013 the total number of branches of the corporation in the territory of the Russian Federation increased to 1.2 thousand.

As for the further profits of the corporation, at the peak of its success - in 2014, they amounted to 34.1 billion rubles. Net profit could be called 146.8 million rubles. 95% of stores were directly managed by the company, and 5% were owned by franchise owners.

"TsentrObuv" became the favorite of Russians because of one very attractive factor: in the network of its stores was presented a rich assortment of inexpensive shoes in the spirit of the newest trends of fashion, but at the same time and the corresponding quality price. The low cost was due to the fact that the import of products to Russia occurred according to "gray" and "black" schemes, minimizing the cost of customs. But why shut down "TsentrObuv"?

Crisis, problems and suits

Like many other companies whose revenues depended on the ratio of the dollar to the ruble, TsentrObuvi had problems already in the same year 2014. First of all, this led to the fact that the corporation could not fully realize its main task: "spin" to giant turnover, go to the IPO (the first public sale of shares), sell their securities and leave the business.

Why closed "CenterObuv" in Moscow, St. Petersburg and other cities? The main reason is the exorbitant debts of the company, which had to raise prices for its low-grade products. This it essentially "cut off" its attractiveness - in Centro came just for the cute, fashionable, but cheap shoes. As a result, demand in kind decreased by 20% (2015), and in monetary terms - by 10% (0.55 trillion rubles). "TsentrObuvi" had debts to Chinese producers, Russian landlords, problems at customs. The result was the "folding" of points of sale.

Thus, the largest shoe seller in Russia was in 2014-2015. On the verge of bankruptcy. Since the first days of 2015, 160 lawsuits have been received from its counterparties and landlords for a total amount of 230 million Russian rubles, incl. Before "Sberbank", VTB, Gazprombank. That's why it becomes clear why the "CenterObuv" was shut down in Yekaterinburg, Moscow, Tomsk and other cities. For example, let us cite some sums of lawsuits:

• From logistics company Itella: 24 million rubles;
• From "Moscow Credit Bank" and "Sandorini": 4.09 million rubles;
• From "Ryazan Shopping Mall Limited": 5 million rubles;
• From the "Ostrov" network: 3 million rubles, etc.

According to SPARK-Interfax, the entire amount of the debt of the shoe corporation ultimately exceeded 25 billion rubles, of which long-term - 15.3 billion rubles, and short-term - 10.1 billion rubles. In May 2016, with respect to the owners of Centro and CentrObuvi, a criminal case was instituted under Art. 159, paragraph 1 of the Criminal Code. They are accused of fraud in the credit environment.

In this situation, not only one "CenterObuve" was not lucky. In relation to the previous year in 2015, the total number of sales of clothing and footwear decreased by 42%. The monetary loss of the sellers amounted to 523.4 trillion rubles (19% of the normal turnover).

Why closed "CenterObuv": statistics

According to general information, in 2015 CenterObuvi had to close 250 of its outlets in Russia, and in the first quarter of 2016 it was about 100. In St. Petersburg, there were three stores out of 33, in Chelyabinsk - eight, in Omsk 6 shops and Etc. However, even after that, the corporation remains the leader in the Russian footwear market.

Although the representatives of "CenterObbuvi" say that the closure of their outlets is a temporary phenomenon, it is hard to believe. According to the estimates of sellers in this area? The price of imported footwear in the crisis conditions has increased by 20-25%. And this means that even the cheapest pair of Ballet from Centro is unlikely to once cost 299 rubles - as in the old days.

The situation abroad

Speaking about why the "CenterObuv" was closed in Russia, it is impossible not to touch upon the state of affairs of the company in other countries. Preparing for the forthcoming public sale of their shares, the owners of the corporation opened their points also in a number of other states. However, nowhere "CenterObuv" has received a success equal to the Russian one. Most of the stores were closed after a few years due to lack of demand. In Poland, "CenterObuv" has wasted about $ 170 million for a campaign to "promote" its stores.

Until recently, things were more or less tolerable only in the former Soviet republic - in Ukraine. In this country, the development of the network since 2011 involved a certain company "Trejdusz". However, the crisis also affected the Ukrainian segment of the footwear market - demand for products decreased by 30-50%, and the number of shops in TsentrObuvi as a result of this decreased from 150 (2015) to 100 (2016)

Official response of management

On the question "Why closed" CenterObuv "in Tomsk, Yekaterinburg, Novosibirsk, Moscow and other cities?" Representatives of the corporation answer that this process is connected with the planned optimization of the trading network. They constantly analyze the profitability of all their offices and close the most unprofitable.

The owners themselves do not consider the situation to be terrible for themselves: the number of closed Russian stores is negligible for their network. In debt to the landlords, "CenterObuv" blames the latter - the owners of retail space in the crisis significantly increased the cost of rent.

Current time and forecasts

Forecasts of experts about the imminent bankruptcy of "CenterObuvi" did not materialize. Trade points of the corporation, albeit in a smaller number, also function in a number of Russian cities. The crisis in the shoe market was a temporary phenomenon.

In the market of cheap shoes, Centro has a new serious competitor - the Kari trade network. However, the owners of TsentrObuvi do not believe that this company will bypass them by the number of stores and the availability of products.

Why shut down "CenterObuv" in your city? The fault was the crisis, and with it the increase in the cost of imported footwear, which provoked a decline in demand for it. As a result, the company was in debt, forcing it to point to liquidate its stores.