Gulliver Comes back to Europe
Russian children clothes retail chain Gulliver opened a 2-storey franchise retail outlet in Limassol, Cyprus, Kommersant informs.
This location was chosen because there is a big apartment complex nearby where around 1,000 Russian speaking families live, the company representatives inform. The outlet is expected to fully pay-off in two years including the expenditures on the building refurbishing, expenses on the in-store equipment and on the starting goods stock purchase.
Gulliver plans to open several more retail outlets in other European cities within three years; however, the details have not been informed yet. As the company President Igor Kuleshov said in his interview to Fashion United, Gulliver will start distribution program in 2018 in such countries as Italy, Spain, Portugal and Great Britain and afterwards in China. Besides that, the company will continue its development in Cyprus: the brand shops will be opened in Paphos and Nicosia.
The retailer considers the development in the international market more promising than concentrating on the domestic market. According to Fashion Consulting Group, the Russian fashion market in 2018 will grow not more than 5%, at the same time the retail sales volume in Cyprus in the first half of 2017 grew 8.9% according to CyStat.
We can recall that Gulliver has already made attempts to enter the European market. A shop in Prague was opened in 2011; however it functioned only about 6 months. An outlet was started in Helsinki in February, 2014; it was closed in September, 2016. Gulliver explains the failures of the first two European outlets with logistics problems which have been solved by now after establishing the company office in Europe.
Gulliver and Company Trading House which is the owner of the Gulliver retail chain was established in 1997. There are three collections in the retailer’s portfolio: Gulliver, Gulliver Baby and Button Blue. The retail chain has 190 outlets in Russia and CIS. The net sales revenue of the company in 2016 was 2.6 billion rubles excluding VAT (10% growth compared to 2015). All the shops sales volume (including franchise) in 2016 exceeded 4.6 billion rubles.