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CCC: revenue down by 21%, but e-commerce is getting strong

Jul 20, 2020 Poland
CCC: revenue down by 21%, but e-commerce is getting strong
The CCC Group ended the second quarter with revenue of nearly 290 million euros, 21% lower than a year ago. The decrease in revenue was the result of pandemic and temporary store closures. E-commerce generated almost half of revenue in the quarter
"Closing the stores for 7 weeks and a deep slump at the level of store visits resulted in the company losing around 220 million euros (1 billion Poland Zlotys) in revenue. We reacted to lockdown very quickly. We have implemented a plan based on an agreement with banks, bondholders, the use of assistance programs ... We were fully prepared to open stores with a new collection. Today, preliminary data for the second quarter show that we have stabilized the situation using all available options. In the face of the pandemic, we've accelerated the pace of e-commerce development. Today we are one of the strongest players in the online channel with a unique omnichannel sales model. We have about 60 different platforms for sale on the web, including mobile applications. The CCC.eu platform has only been in existence for a year, and already has over 1.5 million completed orders. There is still a lot of work ahead of us, but we are on the right track", commented Marcin Czyczerski, President of the Management Board of CCC S.A.

At the end of June, 95% of the group's stores resumed sales: from the 20th of April onwards restrictions on stationary sales were gradually lifted, the return of customers to stores started to result in improved visits, higher year-on-year conversion and number of products on the receipt. During the period of temporary store closure, the CCC Group carried out sales through the e-commerce channel, which as a result recorded a 79% year-on-year increase.

Given the market challenges related to the pandemic, the group said it "significantly accelerated its e-commerce development", launching online platforms and applications in new foreign markets. The ccc.eu store has started on three new markets (Romania, Austria, Hungary), as well as the CCC application. As a result, the ccc.eu platform, existing for over a year, available today in 6 countries, recorded over 200% in the second quarter increase in revenue compared to the previous quarter. In May this year ccc.eu had record sales of nearly 8.96 million euros (40 million Poland Zloty). Eobuwie, the group's e-commerce engine, generated revenues of 119 million euros (532 million Poland Zlotys) (+ 52%y/y), which was influenced by a high number of orders (a total of roughly 2.8 million - including 64% from mobile devices). After a weaker March 2020, in April, May and June eobuwie recorded significant increases in sales (by 28%, 71%, 60% y/y respectively).

"The pandemic has shown us even more clearly that accelerating the development of e-commerce must go hand in hand with increasing the efficiency of logistics processes. And we succeeded. Logistics has maintained high operational efficiency and completed all receipts and shipments throughout the past quarter towards e-commerce and shopping. Even at the end of trade, we exchanged almost the entire range in stores to ensure stocking appropriate to the expectations of customers who visit us after the thawing of the economy", stated Mariusz Gnych, Vice President of the Management Board of CCC S.A for Logistics and Production.

Consolidated gross profit on sales decreased by 26% to 138.91 million euros (620 million Poland Zloty).

At the end of the month of April, the CCC Group was present in 29 countries - in 23 sales are carried out in 1208 stationary stores, and in 17 via an online channel. The group has a total of over 60 online platforms throughout Europe: eobuwie.pl, ccc.eu, MODIVO, DeeZee, and Gino Rossi. In 2019, CCC customers purchased over 52 million pairs of footwear in all sales channels.

Image credits: NordWood Themes on Unsplash

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