NG2 to enter Russia and Ukraine

2010-09-02

NG2, a Polish footwear group that owns the Boti, CCC and Quazi chains, plans to expand its CCC chain on the Russian and Ukrainian markets. The stores will operate on the franchise model. Within the next six months, the company intends to set up between five and six establishments in the latter countries.
Moreover, NG2 plans to continue its expansion on the Polish market. In 2010, the company aims to open around 50 stores in Poland. By the end of this year it also plans to open eight establishments in the Czech Republic. Previously, the group intended to launch around 78 stores in 2010 in total, though due to delays in the shopping galleries’ openings it will not manage to realise its plans.
The company also is working on reducing the number of franchise establishments in Poland. By the end of 2010, the share of revenues generated by franchise stores are to go down to 15% from 18.3% at the end of the first half of 2010.
After the first six months of 2010, NG2’s sales revenues totaled to PLN 440.3m ($144.4m), reflecting a 4.3% rise year on year, while net profit grew by 48.7% to PLN 52.8m ($16.8m). Over the period, CCC chain generated 54.8% of the revenues, while Boti and Quazi made 17.9% and 2.06% of sales revenues, respectively.