Ulmart has announced the next stage of the company’s strategic development that envisions construction of proprietary logistical platform in Russia.
Chairman of the board of directors, Dmitry Kostygin, revealed that Ulmart has already initiated implementation of the project for construction of four next-generation multifunctional distribution centres in Moscow and St. Petersburg with total investments in excess of $140m (10.4bn rubles). The first centre, located in the vicinity of Pulkovo Airport in St. Petersburg, was opened in October 2015. By the end of 2016, Ulmart Development plans to complete two similar venues located in the town of Mytishchi in the Moscow Region, and at Piskarevsky Avenue of St. Petersburg. This year, the company will also begin active construction of the 60,000m² regional distribution centre at Sofiyskaya Street in St. Petersburg that will become the largest facility in Ulmart’s logistical infrastructure. The facility is set to be commissioned in Q1 2017.
As of the end of 2015, Ulmart assets include 190,000m² of effective floor areas for warehouse storage, and in the course of 2016 the retailer plans to increase its own infrastructure up to 350,000m² of retail and logistics properties.
“Working on our own, we had built and launched the flagship Ulmart Pulkovo center, and we are building three more such centres from scratch. Altogether we plan to create ten such complexes with a total floor area of 500,000m²,” said Dmitry Kostygin, the chairman of Ulmart’s board.
Ulmart has also shared its plans to create a national online marketplace, which is currently in testing stages. By the end of the year the company plans to add more than 100 partners to its own system, giving them the opportunity to enjoy both the advantages of Ulmart’s online storefront and the resources of company’s logistical infrastructure that helps to quickly deliver the goods to consumers across Russia. The company’s management believes that by doing this Ulmart will guarantee its own business growth despite the fact that the Russians’ purchasing power has already fallen by 20-25%. As of today, Ulmart’s virtual storefront represents 12 million items stored at the suppliers’ warehouses. The majority of them are car accessories. In the course of 2016, the company plans to increase this partnership network significantly, attracting vendors from different product categories, both from Russia and abroad.
This year, Ulmart leads the Russian e-commerce market in terms of growth. According to the Russian E-commerce Association, in 2015 the Russian online retail market grew by 20%, to 570bn rubles. At the same time, according to an independent evaluation by Deloitte, Ulmart’s average annual growth amounted to 63%. At year-end 2015, the company’s turnover equalled 62.7bn rubles. Ulmart network consists of 480 logistical facilities in more than 240 Russian cities. There are four suburban order fulfilment centres, 38 urban order fulfilment centres, and 443 Ulmart Outpost pick-up points. The online retailer has a total client base of 14.7mn users (10% of Russia’s population), and more than 30,000 orders are placed on Ulmart’s e-platform daily.
