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CCC SACCC footwear plans to change business model of Modivo Group
Listed footwear group CCC plans to change CCC's e-commerce unit Modivo Group's business model and quickly build a highly profitable online business, the company said.
"We need to change the sales formula in Modivo, it needs to be more profitable," CEO Dariusz Milek told a press conference.
The presentation stated that Modivo is to handle the e-commerce of all business lines of the CCC group and increase the share of own and licence brands in the offer.
"Modivo will provide services for the entire group. It will do e-commerce, logistics, photography, call centre, transport, etc.," Milek said.
According to the CEO, there are plans to create one Modivo club for all brands, also with paid subscription and benefits for participants.
He indicated that cost optimisation is also underway at Modivo. The aim is also to reduce inventory.
"We need to get down the inventory quickly at Modivo. All we have to do is reduce purchases for the autumn, delist half the brands," Milek added.
"For there to be a Modivo IPO, we need to gain profitability. We are focusing on profitability in the coming months. (...) I need two quarters," asked about Modivo IPO.
He informed that the changes are being made "with the consent of the shareholders" of the company.
"We will discuss what form of settlement we will take, maybe a buyout. For now, they are patient. The next two quarters must be a confirmation of our plans," the CCC CEO added.
pel/ nl/ han/