Detsky Mir

PAO Detsky Mir
Native name
 Де́тский мир
Public
Traded as MCX: DSKY
Industry Children's retail
Founded June 6, 1957 in Moscow, Russia
Key people
 Vladimir Chirakhov (CEO)
Owners AFK Sistema, others
Subsidiaries Early Learning Center
Website detmir.ru

Children's World (Russian: «Де́тский мир») or Detsky Mir is a Russian children's retailer.[1] Opened on June 6, 1957, as of February 2017, the company had 525 stores.[1] Vladimir Chirakhov serves as CEO.[1] It is the largest children's goods retailer in Russia and the CIS, with the retail chain in both Russia and Kazakhstan. Detsky Mir Group also owns the ELC (Early Learning Center) retail chain in Russia.[2] On February 8, 2017, PAO Detsky Mir listed its shares "in the first major initial public offering in Russia since the annexation of Crimea."[1]

History

Formation

Detsky Mir first opened on June 6, 1957 in the center of Moscow at Lubyanka Square. Detsky Mir became a chain of children's retailers in Russia in the 2000s.[1] After the original store opened, Bloomberg writes that "Detsky Mir became a household name, prompting the Soviet government to open a network of large stores by the same name."[3] The Wall Street Journal writes that "the main owner of Detsky Mir, conglomerate AFK Sistema, put off plans for an IPO in 2014."[1] Bloomberg writes "Sistema’s founder, billionaire Vladimir Evtushenkov, shelved a planned IPO of Detsky Mir in 2014 after Russia’s annexation of Crimea."[4]

Original Detsky Mir store

The original Detsky Mir department store in Moscow, pictured in 2007, shortly before it was sold and rebuilt.

Detsky Mir no longer owns the original store it opened in Moscow.[1] The store was built between 1953 and 1957 in the center of Moscow, on Dzerzhinsky Square (renamed Lubyanka Square in 1990). It was designed by architect Alexei Dushkin[5] on the site of the Lubyanka passage over the subway station "Dzerzhinsk" (since 1990 - "Lubyanka"). The shop opened on June 6, 1957. In 2005, the building received the status of cultural heritage at the regional level.

In 2006, the owner of the building "Hals-Development" announced its reconstruction. Because of the protected status only restoration work was allowed, it prohibits new construction in areas of cultural heritage. It was Russia's largest toy shop from 1957 until 2008, when it was sold by Detsky Mir to new owners.[3] The store was purchased by VTB in 2008 and was closed for restoration,[5] with the cost of the restoration estimated at US $138 million.[6] The building reopened on March 31, 2015 under the name Central Children's Store on Lubyanka.[5] The historical name still belonged to the owner of the building as the trade network "Children's World."[7][3][8]

IPO

R&D building for Detsky Mir

By 2015, the Detsky Mir chain had around 320 locations and was owned by Vladimir Evtushenkov.[3] The company expects 2016 revenue of $1.3 billion (79.2 billion rubles) for 2016, a 30% increase from 2015.[1] “Children’s World” opened around 200 stores between 2015 and early 2017, with plans to open 250 over the next three years, bringing the total to 700.[4] As of February 2017, the company had 525 stores, with plans to open 250 more by 2020.[1]

On February 8, 2017, PAO Detsky Mir listed its shares "in the first major initial public offering in Russia since the annexation of Crimea." The IPO raised $355 million, valuing the company at around $1 billion, with plans for stock to begin trading on February 10, 2017.[1] It debuted on the Moscow Exchange on Friday on February 10, 2017.[9] Around 90 percent of the shares were bought by foreign investors.[10][11]

On February 7, 2017, Detsky Mir closed the book on the IPO.[12]

Products

Bloomberg writes in February 2017 that the franchise "offers everything from strained carrots to bicycles to frilly party dresses in stores that often feature entertainment areas where kids play with Lego and shoot Nerf balls."[4]

See also

References

  1. 1 2 3 4 5 6 7 8 9 10 Marson, James; Razumovskaya, Olga (February 8, 2017), Investors Warm to Russia, With Toy-Store Owner Set to Be First Big IPO Since 2014, New York City: The Wall Street Journal, retrieved February 8, 2017
  2. ↑ Detksy Mir, Sistema, retrieved February 12, 2017
  3. 1 2 3 4 Khrennikov, Ilya (March 31, 2015), Hamleys Moscow Store Transcends Toy Retailer’s London Flagship, Bloomberg
  4. 1 2 3 Khrennikov, Ilya; Matlack, Carol (February 8, 2017), Detsky Mir Aims to Prove Toys R Russia With $355 Million IPO, New York City: Bloomberg, retrieved February 12, 2017
  5. 1 2 3 d'Amora, Delphine (March 31, 2015), Soviet Union's Top Toy Store Back in Business, The Moscow Times
  6. ↑ Soviet-era mega toy store re-opens in Moscow after 7-year renovation, The Malay Mail Online, April 5, 2015
  7. ↑ Do not advertise a past dark with pain, The Financial Times, March 26, 2015
  8. ↑ Legendary Soviet children’s store reopens after refit, Taipei Times AFP, April 4, 2015
  9. ↑ Kiselyova, Maria (February 10, 2017), Russian toy retailer Detsky Mir rises in market debut, New York City: Bloomberg, retrieved February 12, 2017
  10. ↑ Seddon, Max (February 8, 2017), Russian retailer Detsky Mir raises $355m in ‘litmus test’ IPO, Financial Times, retrieved February 12, 2017
  11. ↑ Investors Are Tiptoeing Back Into Russia with This Unusual IPO, Reuters, February 8, 2017, retrieved February 12, 2017
  12. ↑ Russia's Detsky Mir narrows IPO price range to 85-87 roubles -source, Reuters, February 7, 2017, retrieved February 18, 2017

Coordinates: 55°45′37″N 37°37′29″E / 55.7602°N 37.6248°E / 55.7602; 37.6248

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