E-COMMERCE BUSINESS

Eurotorg’s store-based retail operations are complemented by its market-leading online grocery retail business. The launch of the online grocery service took place in 2014 and since then the Company is a leader in this segment.

Belarus online grocery market has one of the highest growth rates in Europe. Grocery e-commerce has grown more than 30-fold in Belarus over the past 6 years, and high growth momentum is expected to continue. The main drivers of growth are further increase in penetration of the Internet, smartphones and banking cards and growing e-commerce market, with more consumers trying online shopping and sticking to it.

For today Eurotorg online grocery service has become the largest in Belarus with 97% market share and 3.7 mn orders1 per year. Success of Eurotorg online grocery retail business is ensured by its strong brand and efficiency of built business processes: disciplined SKU count, efficient supply chain and know-how in online services. Thanks to these factors the Group has been able to achieve positive profitability in e-commerce on a standalone basis.

Operating highlights:

  • 3.7 mn orders1 – one of the largest (by # of orders) online grocery player in Eastern Europe

  • Positive profitability – one of the few profitable online grocery projects in the world

  • ~590 vehicles – own delivery fleet2

  • ~800 couriers2 and ~940 pickers2

  • 8 dark stores2 and one distribution center2 with a total space of ~27.9 ths. sqm – own fulfillment & delivery infrastructure

  • Own IT system developed & serviced by in-house team

The relevance of online shopping has increased amid the spread of COVID-19, which has significantly changed buying habits — people are ordering goods online more and more each day. To meet increased demand, the Company expanded and scaled up online grocery business.

1) For the last 12 months ending June 30, 2020

2) As of November 24, 2020