In the first three quarters of this year, the turnover of the SOKOLOV jewelry holding company increased by 37% compared to the same period last year and reached 44.7 billion rubles ($462.3 million).
The main driver of growth was retail sales, which increased by 39% and reached 34.5 billion rubles, while online sales increased by 40% to 14.6 billion rubles, including sales through marketplaces, where it grew by 45%.
Offline retail turnover amounted to 18.3 billion rubles (an increase of 38%).
The number of stores in the brand's network reached 867, including franchises, and the network of franchise outlets expanded to 220 stores.
The number of customers registered in the SOKOLOV loyalty program reached 21.6 million, and the average bill was 8,613 rubles.
Wholesale sales, including exports and franchises, increased by 30% in Q3.
Sales of gold products increased by 39%, accounting for 74% of the company's revenue.
The silver category grew by 30%, and its share was 26%. Another 2.2 billion rubles came from sales of non-jewelry products such as cosmetics, leather accessories and watches.
As noted by SOKOLOV CEO Nikolay Polyakov, the planned expansion of branded retail along with active growth in sales on marketplaces, as well as the rise in the cost of gold - by 44% since the beginning of the year - remain key factors in the growth of the company's turnover. In addition, the growing share of loyal customers who have made 2 or more purchases has a significant impact on the stable growth of the business. This year, it reached 55% of the active customer base. The fourth quarter is the seasonal peak of retail sales due to autumn sales and New Year promotions, so the company plans to maintain growth rates ahead of the market and reach 65-70 billion rubles in turnover by the end of the year.
SOKOLOV is one of the leaders of the Russian jewelry market. It is a vertically integrated holding that unites one of the largest jewelry production facilities in Russia and omnichannel distribution.
Under the SOKOLOV brand, more than 30 million gold and silver products weighing about 40 tons are produced annually at four production sites in the Kostroma, Ivanovo and Yaroslavl regions. The company is one of the largest wholesale suppliers in Russia and cooperates with 4,000 small and medium-sized businesses, as well as local jewelry retail chains and leading marketplaces. SOKOLOV branded retail currently has 867 stores in 260 cities in Russia and the CIS, including 220 franchises. The key driver of retail sales development is e-commerce, which accounts for more than 30% of the company's retail revenue.
Galina Semyonova, Editor in Chief of the Russian Bureau, Rough&Polished
