Baltika Group 2016
Baltika’s emphasis for year 2016 retail operations in Baltics is increasing profitability through gross profit margin improvement. Goods purchase price growth from dollar exchange rate and other cost components is under control already from last quarter of year 2015. Level of inventory is also at more optimal level that will help to alleviate the pressure to sell goods through discounts on the Baltic market.
Baltika will continue developing other sales channels. The franchise portfolio will increase in year 2016 in St. Petersburg, Kazan and Kaliningrad by 8 stores that were previously operated by Baltika Group and cooperation with existing partners will also continue. The increase of e-store sales in 2016 should be supported by the plan to start selling through third party webpages.
Baltika will continue its work towards more efficient organisation. Inventory management will remain in Baltika’s focus in year 2016 and work on improvement of other head-office processes will continue to reduce head-office operating expense.
No major investments are planned for 2016, regular amounts will be invested into own retail network.
Taking into account the long-term strategy, the targets for the Management of Baltika Group for 2016 are:
- Growth in Baltic retail market sales and increase of profitability through improvement of gross profit margin
- Other sales channels (wholesale, franchise and e-store) development and increase in sales growth
- Better inventory management – higher inventory turnover
- Operating efficiency improvement – decrease of head-office expense