Gloria Jeans revenue in 2022 increased to 70 billion rubles

Gloria Jeans’ revenue in 2022 amounted to 70 billion rubles, according to the company’s unaudited management reports, which Vedomosti reviewed. This is 15% more than in 2021. Online sales of the group reached 9.5 billion rubles. The group’s EBITDA amounted to RUB 12.5 billion. (17.85%). Operating profit increased to 10.2 billion rubles (14.57%).

At the end of the year, the group included 675 stores in more than 300 cities. The total real estate area was 520,000 sq. m., retail area – 440,000 sq. m.

In 2022, the retailer opened about a dozen stores on the former premises of departed overseas retailers, primarily replacing H&M. Also, Gloria Jeans began to open larger outlets ranging from 1200 sq. m, and for this expanded the range. In 2023, Gloria Jeans, according to the chairman of the board of directors of the company Vladimir Melnikov, plans to open up to 130 stores.

Among the remaining players in the Russian market (after the departure of Inditex and H&M), the largest clothing retailers are Gloria Jeans and Ostin, although it is still difficult to say which of these two is ahead in 2022, says Mikhail Burmistrov, CEO of Infoline-Analytics. Retailer Gloria Jeans, like other large Russian retailers in 2022, received additional opportunities for development against the backdrop of the departure of foreign brands, explains Irina Tsarkova, director of the retail real estate department at Nikoliers. According to her, Russian brands have previously implemented various strategies to expand their business, increased the assortment matrix and opened new stores, and in the current situation they have received additional opportunities for development and are negotiating placement in top locations in shopping centers, which were previously rented by foreign brands. For example, at the beginning of February 2023, the Gloria Jeans store was opened in the VEER Mall shopping center in a new format with an area of ​​2,100 sq. m. m in place of the H&M retailer that left the Russian market.

In 2022, the company set a course to update the design and concept of new stores, and throughout the year actively opened new stores in various regions of Russia. For example, in the new format, stores were reopened in the MEGA shopping center in Rostov, the Fantastica shopping center in Nizhny Novgorod and the RIO shopping center Dmitrovka in Moscow, she lists. This includes the opening of new GJ Loungewear stores, which offer sportswear, homewear, lingerie and swimwear. So, for example, in 2022, a store was opened in the Zelenopark shopping center, as well as in the Vernissage shopping center in Yaroslavl. In total, about 70 chain stores were opened in 2022, according to Nikoliers.

Active work to update the formats and assortment matrix of stores in the current situation for Russian brands is a logical story, Tsarkova believes. Burmistrov calls the transformation of Gloria Jeans successful, incl. thanks to the fact that the company has its own production in Russia, which helps to increase volumes and control costs, he says. “We expect the company to significantly increase the number of openings, taking into account the departure of brands that are no longer freezing, namely closing their facilities,” he sums up.