CCC: Halfprice is now available online
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polski
Shortly after CCC announced its new strategy, which includes bringing the share of e-commerce revenues to 60%, the company’s HalfPrice chain launches an e-store. IT will work in the shopping club format and will be available for logged users only. CCC club members, however, will also be able to use it. PMR projects that the growth rate for the fashion market this year is 14.0% and does not allow for making up for last year’s losses, which, according to PMR forecasts, will only happen in 2022.
The new strategy, to be implemented until 2025, is the company’s response to the changes taking place in the industry. In its new growth plan, CCC Group wants to triple its revenue compared to the third quarter of 2021 and achieve a consolidated EBITDA margin (from IFRS16) above 12%. In addition, CCC plans for the share of the revenue from new categories unrelated to footwear to be around one-third, and the share of sales from online channels to increase from 45%, which was recorded in the third quarter of this year, to 60%.
The strategy also includes fashion brands belonging to the CCC Group – both Modivo and HalfPrice are to generate 15-20% of the Group’s revenue each in 2025. Both brands, which operate in Central and Eastern European countries, will also expand their product offer, while HalfPrice is to additionally develop its e-commerce platform. Another fashion brand, which in turn has a pan-European reach, is DeeZee, and the percentage share in Group revenues is expected to be 5% in 2025.
Halfprice chain in the off-price category, which offers, among others, clothes, shoes, accessories, cosmetics, toys and elements of home equipment and decoration. The brand debut took place in Wroclaw’s Wroclavia, Szczecin’s Galaxy, Galeria Polnocna in Warsaw, Gemini Park in Tychy and Park Handlowy in Polkowice. By the end of the year HalfPrice will have opened in about 60 locations in Poland. Purchased products can be ordered with delivery to your home, parcel machine, or to a designated HalfPrice store. For the time being, the online store’s portfolio is only available in Poland.
PMR’s view:
According to PMR estimates, the year 2020 brought a year-on-year decline of -16.3% for the clothing and footwear retail sector in Poland, offset by growth in the online channel. However, online sales were still unable to compensate for the losses caused by reduced spending on fashion categories (which were declared by 55% of respondents to PMR’s survey conducted in August 2021) and mall closures. The total number of non-trading days of fashion stores in malls in 2020, i.e. affected by Covid-19 restrictions, Sunday trade ban and public holidays, amounted to 122.
PMR experts remind that the off-price concept is very well received by consumers. In Poland, the new CCC group chain will compete – to different extent – with outlet centres, non-food discount shops as well as with Flying Tiger or TK Maxx chain shops. The sector of non-food discount stores in Poland has expanded rapidly over the past decade, with the number of such stores growing by more than 100 annually. Non-food discounters rely on fast-expanding retail footprint, low prices, diverse assortment. They have short and variable offers, which encourage frequent visits to the shops. As a result, over 8 in 10 Poles know the Pepco chain, 57% know KiK and 32% know TXM, according to a survey conducted by PMR in April 2021. The three more recent entrants into the country’s non-food discount store sector have also done well to establish themselves in the minds of Polish consumers, with almost 3 in 10 of our respondents saying they know Action, and roughly one in five professing familiarity with Dealz and Tedi.
