Annual Report - JD Group

Abra – practical solutions for your home
Established in 1990 and acquired
in December 2000 Abra operates
36 stores (2003: 26) in major cities and
towns in Poland, targeting the middle
to lower mass market and offering an
extensive range of furniture products.
Mission
To become the preferred leading furniture retailer in Central
Eastern Europe through the supply of consistent quality products
and services to our customers, with the collective involvement and
contribution of all our employees and business partners.
Review
Abra ended the year with 36 stores in 31 cities and towns. The
chain expanded its base by opening 13 new stores. At the same
time the existing base was optimised, resulting in the closure of
three underperforming stores.
The customer survey carried out as part of a brand positioning
and communication strategy confirmed our position in targeting
the middle to lower mass market. A new catalogue was launched
in May, starting the process of building brand awareness across
the country.
The foot traffic counters installed indicated that 200 000 people
had visited our stores and in addition the number of customers
visiting our website showed a healthy growth.
29
Piotr Krzanowski (50)
Chief executive – 14*
Executive management
Kazi Borowicz (43)
MSc
Finance and administration – 14*
Piotr Lisowski (36)
MSc
Marketing and merchandise – 11*
* years experience in furniture
retail
Gross margin has improved consistently over the year and the
average transaction value has also increased. Stock turn has
improved significantly.
Outlook
13 New stores, many of which will be a smaller format, and one
new warehouse are budgeted for in 2005, which will give Abra
apresence throughout Poland.
The new concept of catalogue showrooms will be tested in smaller
towns and the option for franchise operations remains open.
Despite the rapid network growth the head count at head office
did not grow exponentially, however, the move to a new head
office in March 2005 will accommodate an increase in employee
complement as the store base grows.
With the increased critical mass of the store base, Abra is
expected to make a small contribution towards Group profits in
2005 and a greater contribution from 2006 onwards.