In 2015, the network of shoe discounters CenterObvuy and Centro suffered a deplorable fate. Shops began to close everywhere, the number of outlets in Moscow and the region, St. Petersburg, Kazan, Yekaterinburg, Chelyabinsk, Novocherkassk, Rostov-on-Don and many other million-plus cities was significantly reduced. Everywhere the same question sounded: "Why are the TsentrObuv stores closed?" There can be many reasons: small clientele, overpriced, low-quality shoes. But after all, none of these reasons is characteristic for the TsentrObuv brand as it was known only recently. What then became the main reason for the trading house to leave the Russian market?
What was the CenterObuv store?
People have always looked for inexpensive and high-quality shoes. With the advent of the TsentrObuv trading house, this problem was resolved by itself. The store has existed since 1992. Exactly the same amount of its popularity exists. Since then, the company has come a long way in development, like everyone has had ups and downs. The demand for CenterObuv has never been called into question, the appearance of related products in stores: accessories, jewelry, bags and shoe care products, completely resolved the issue.
The assortment of this store has always been so huge that people rarely came out without at least one purchase in their hands. In “TsentrObuv” it was possible to find shoes for every taste, style, age and gender, and all this at very reasonable prices. In addition, promotions were held regularly. Of course, when the first closures began, many thought about why the CenterObuv stores were closing. After all, the people's love for this trading house was undeniable.
Reasons for the closure of a chain of stores in Russia
The company "TsentrObuv" has outstanding financial obligations since 2014. Already at the beginning of 2015, lawsuits fell one after another on the store. For the most part, these are claims from landlords, logistics companies and advertising agencies. The bill goes to millions, and the amounts are so huge that it immediately becomes clear why the CenterObuv stores are closing. The web is simply nothing to exist on.
As of June 2015, the number of stores in Russia fluctuated around 1000. But the data for 2016 will surprise anyone - there are only 53 outlets in the Russian Federation. And this is taking into account the fact that 95% of stores belong to the company itself, and only 5% to franchise owners.
Outlets continue to close, and debts are growing. A little more, and why the CenterObuv chain of stores closed, will become obvious.
"TsentrObuv" in Moscow is no more?
Given the fall of the ruble, it is not surprising that people began to save significantly. This was reflected in the purchase of shoes. The number of TsentrObuv stores in Moscow has been reduced to a minimum. Million-plus cities have ceased to generate significant profits. That's why the CenterObuv stores in Moscow are closing.
In particular, litigation is taking place with Moscow banks. Perhaps very soon the trading house will declare bankruptcy. All existing stores in Moscow and the region (in the amount of 25 outlets) may simply close, and then any reminder of this brand will disappear. Many people will lose their jobs. Even more citizens will be forced to buy shoes at exorbitant prices.
The debt burden prevents the store from raising sales, and it seems simply impossible to get out of such a serious crisis.
How are things in St. Petersburg?
In St. Petersburg, the situation with TsentrObuv stores is even worse. If earlier there were 33 stores in the city, now there are only 3 left. On the network you can find a large number of people asking why CenterObuv stores are closing in St. Petersburg. The answer is only one - a huge debt. In addition, many talk about the poor attitude of staff towards customers. Opinions were divided: some prove the arrogance of customers, others speak of aggressive sellers. In general, such an attitude in stores is extremely unusual for St. Petersburg, the cultural capital of the Russian Federation.
Another reason for this decline in interest in these outlets is a significant increase in prices. In addition, from 2015 in St. Petersburg, applications to the arbitration court from some partner companies have been registered. They want to receive an amount of 60 million rubles from CenterObuv. The court has already granted claims for 30 million, but soon the company will simply not be able to pay debts. So St. Petersburg is very at risk of losing outlets "TsentrObuv".
Kazan: "Goodbye," TsentrObuv "
The spontaneous closure of outlets and the territory of the Republic of Tatarstan was not spared. “Why did the CenterObuv stores close in Kazan? Where to find inexpensive shoes now? ” - Residents of the republic were indignant at countless forums and on social networks. The reason for the closure is the same: huge debts. Shortly before such a large-scale crisis, the company developed a new brand - Centro. However, it is now clear that the new discounter chain has not saved the trading house.
In anticipation of the closure of all retail outlets in Kazan, TsentrObuv organized total sales. Almost all products were given almost nothing. Of course, the profit was not so great, but part of the debt was repaid with this money.
Will “Center Shoes” appear again?
It is not known whether the company will cope with the internal crisis. Due to the lack of normal relations between the co-owners of the company, it is still impossible to predict something. The trading house is now on the verge of bankruptcy, shares in this business are often resold, owners change at a tremendous speed. Cooperation with banks also collapsed, confidence was lost. The imposition of sanctions also damaged the company's operations. All these factors fully explain why the CenterObuv stores are closing.
Even the new owner D. Vernimont is unlikely to be able to bring the company into working condition. "TsentrObuv" is sinking. However, it can be stated with accuracy that very soon a similar company with an extensive selection of shoes and accessories will certainly appear on the Russian market. Russia is characterized by the presence of interchangeable goods and services. There will be no "TsentrObuv" - there will be something else. And it is likely that the memory of a chain of stores will be erased very quickly.