The CCC group comes out of the pandemic stronger, with an even stronger one e-commerce and closes the fiscal year 2020/21 with similar revenues
The CCC Group ended the financial year 2020/21 (including January '21) with revenues at the level of PLN 5.6 billion. The protracted lockdowns last year were accompanied by a dynamic growth e-commerce - as much as 71% yoy. The CCC Group continued the development of the omnichannel model, optimizing the offline channel and scaling its presence in the online segment. The company has successfully strengthened its market position by implementing new technologies, investing in logistics and launching new online platforms in new markets, as well as significantly expanding the product offer - including collections matching into the principles of sustainable development. The CCC Group also published the fourth non-financial report, reviewing the activities in the areas included in the sustainable development strategy, which is one of the pillars of the GO.22 business strategy.
Last year was marked by a pandemic and many challenges related to it, especially for the retail industry. -Last year was marked by a pandemic and many challenges related to it, especially for the retail industry. -We can certainly say that it was one of the most demanding periods in the history of the CCC Group. However, thanks to our earlier investments in e-commerce and technology development, as well as a quick response to changing external conditions, we came out even stronger and more determined - says Dariusz Miłek, Chairman of the Supervisory Board of the CCC Group.
- Continuous development remains one of our priorities, which is why we focus on further expansion. This is evidenced by the opening of a new concept of off-price stores, which will be available in nearly 60 locations in Poland by the end of the year. Thanks to a flexible approach to business management in the new reality, cost optimization, investments in e-commerce and logistics, as well as listening to customer expectations, the CCC Group ended the financial year 2020/21 (13-month) with revenues of PLN 5.6 billion , of which nearly half (48%) were e-commerce sales.
- Considering the introduction of three lockdowns, mostlyin the key trading months, ie March, April and November, this is a good result. We have achieved it, among others thanks to paying special attention to the development of e-commerce, product and designand implementation of a new marketing strategy - says Marcin Czyczerski, President of the Management Board of the CCC Group.
Apart from the COVID-19 pandemic, a significant factor influencing the Group's results was the creation of significant provisions and write-offs related mainly to the restructuring of the stationary operations in the Western Europe region.The management board decided to give up the development of the chain of stores in the countries of the DACH region (Germany, Switzerland, Austria) in order to devote full attention to the expansion in the key CEE region and in the online sales segment.
- The decisions made allowed us to concentrate the activities of the CCC Group in the region with the greatest potential for us. We believe that they will pay off with even more dynamic development of the company - adds Mariusz Gnych, Vice President of the Management Board of the CCC Group for Corporate Affairs.
Last year, the priority of the CCC Group was to maintain liquidity and maintain the stability of long-term financing. For this purpose, the Company started talks with banks and bondholders.In the first quarter of 2021, the Group tentatively confirmed the selected terms of the new bank financing. This is the next stage of work on the refinancing of liabilities, the aim of which is to ensure a safe, long-term level of financing in line with the business assumptions of the GO.22 strategy.
The undisputed leader in e-commerceThe undisputed leader in e-commerce
Recent years have been a time of intensive development of internet channels in the CCC Group. - The pandemic and subsequent closures of the economy caused customers to rapidly transfer their purchasing activity to the network.In our GO.22 strategy, we anticipated this development, but we also assumed that it would happen over a longer period of time. Although the coronavirus significantly accelerated the change in shopping behavior, we were very well prepared for the migration of consumers to online stores. Today we are with customers wherever they are: offline, online or both. There is no doubt that the omnichannel model implemented by us works well, which is perfectly reflected in the market position of the CCC Group - Karol Półtorak, Vice President of the CCC Group for Strategy and Development.
The main drive of e-commerce is eobuwie.pl, whose sales in the financial year 2020/21 amounted to PLN 2.4 billion (+ 54% yoy), with an EBITDA margin of 8%. The brand is also increasing its share in new markets (mainly in Southern Europe) and developing a premium fashion platform - Modivo, which is available in 13 countries. Its share in the revenues of the eobuwie.pl Group in the entire 2020 was already 10%. In 2020, Modivo increased its revenues at the rate of 300% y-o-y. Acquired at the beginning of April this year. two minority shareholders, each of whom will take up a 10% stake in eobuwie.pl, will strengthen the company in achieving the main goal of further rapid development and strengthening the position of the European e-commerce leader. - The growth rate of online channels is largely determined by the development of logistics facilities. With this in mind, last year We have launched a new distribution center in Zielona Góra, and we are currently finalizing its further expansion. We are also working intensively on the launch of a warehouse in Bucharest. This year we are also sure of the phenomenal results - sums up Marcin Grzymkowski, founder and President of the Management Board of eobuwie.pl and Modivo. - The pandemic has changed our purchasing preferences, and the inevitable digitization has also affected the world of fashion. Thanks to innovative solutions in the area of fashiontech, eobuwie.pl and Modivo customers not only improve the experience, but also significantly shorten the process of making purchasing decisions. I am convinced,that further development of e-commerce is inevitable, and we are ready for it.
At the same time, the importance of other e-commerce channels of the CCC Group (CCC.eu, DeeZee, Gino Rossi) is growing,which already accounted for 17% of online sales in the 2020/21 financial year, compared to 6% in the same period a year earlier. Almost 5 million people already use the CCC mobile application. Last year, the Group also worked intensively on the new version of the CCC Club, which debuted in March this year. In turn, residents of 36 cities in Poland, thanks to the CCC Express service, can enjoy the purchased shoes just 1.5 hours after placing an online order. The ccc.eu platform, which was launched on 3 new markets last year, was the fastest growing channel of the Group (+ 753% y-o-y). During the entire financial year 2020/21, 22 new e-commerce platforms were opened in 9 markets. Today, customers of the CCC Group can use a total of 82 online channels in 18 countries.
Taking into account the dynamics of the Group's development and its ambitious plans, in the first quarter of 2021, three new Vice-Presidents were appointed to the management board - Adam Holwa, Igor Matus, and Kryspin Derejczyk. They will supervise three important areas of business - in the field of supply chain management, corporate governance and financial management.
The CCC Group publishes the 4th non-financial report
In 2020, the CCC Group consistently implemented plans also in the field of sustainable development, which is one of the pillars of the GO.22 business strategy. The company focuses its activities on 4 key areas, i.e. responsible product, environmental responsibility, responsibility towards employees and society.
- Sustainable development is an integral part of our business, so we are convinced that even a pandemic does not exempt us from environmental and social commitment. Today, when we revise the adopted ESG goals for the fourth time, we can see how many activities in this area have been implemented. We are very happy about it, but we are not resting on our laurels. We will continue to gradually strive to ensure that our activities are conducted in accordance with the principles of sustainable development. This is our commitment as an industry leader - says Marcin Czyczerski.
As part of the implementation of activities related to responsibility for the created products,CCC has introduced a collection of shoes and accessories "Go for nature", produced in a sustainable way, using ecological materials and technologies that optimize the use of water and energy during the process of their creation. An important element of the company's operations in this area was also the effective management of the supply chain. The Supplier Code of Conduct implemented and signed by 100% of the Group's suppliers and periodic audits guarantee that the products offered by the organization are safe, of high quality, manufactured and then sold responsibly.
- At the CCC Group, we listen very carefully to the voice of our clients who make their consumer decisions more and more consciously. They expect us to produce products that are safe for the natural environment and respect human rights, and we actively respond to these needs, adds Karol Półtorak.
In the analyzed period, CCC also took many actions aimed at the optimal use of resources and reduction of waste. As a result, in 2020, in the company's stationary stores, plastic bags were completely abandoned and recycled paper packaging was introduced. On the other hand, products ordered in e-commerce channels reach customers in ecological boxes. The company assumes that in 2021 70% of its own packaging will be recycled, and in 2022 80% of it will be recyclable. Being responsible for its products, the company also launched a shoe collection campaign under the slogan "Give your shoes a second life". As part of this initiative, only last year, 10 tonnes of used footwear were collected and disposed of in a safe manner.
In the 2020/21 fiscal year, the organization continued to look for ways to reduce its electricity consumption and greenhouse gas emissions. In the buildings where the CCC Group conducts operational activities, intelligent management systems have been improved, and solutions introduced last year in the chain of showrooms, incl. lighting and LED screens reduced energy consumption per 1 m2 of retail space. The company has pledged that 100% of the electricity purchased will come from 2021from renewable sources, i.e. from small hydropower plants and wind farms.
Actions taken by the CCC Group in the field of sustainable development are noticed by the market.In 2020, i.e. earlier than the original assumptions, the company achieved A in the MSCI rating. Furthermore,it was ranked 11th among all companies in the world and 2nd in the industry in the global, prestigious Refinitiv rating for diversity and inclusion.
A full description of the activities undertaken by CCC as part of sustainable development in the financial year 2020/21 is available at - https://corporate.ccc.eu/raporty-csr
