O`KEY Group S.A. (LSE: OKEY, RAEX – ‘ruA-’) is the first Russian food retailer to fully stop selling primary oil plastic bags. This step is inspired by O`KEY’s environmental concerns and the introduction of new Live Green corporate policy requirements.
As an alternative, O`KEY’s customers will be offered 10 packaging options which will be introduced at O`KEY hypermarkets throughout Q1 2020. This will include biodegradable corn starch and 100%-recycled plastic bags, as well as reusable shopping bags of various capacities – from heavy-duty paper bags to jute, cotton, nylon and PVC durable items. By the end of February, the hypermarket chain will have completely stopped selling primary oil plastic shopping bags.
One of these packaging types – cotton bags – will feature O`KEY’s Kind Purchase campaign, launched at the end of last year and raising RUB 7 million of donations. Other bags, featuring a drawing by the winner of the children’s drawing competition, “A Kind Purchase Through the Eyes of a Child”, will be offered across O`KEY chain on a continuous basis. Some proceeds from the sale of these bags will be donated to Rusfond to help seriously ill children.
Through completely refusing plastic bags, O`KEY will further minimise its environmental footprint. Over four trillion plastic bags are used globally each year, with their natural decomposition taking between 400 and 700 years, therefore leading to incessant pollution. Some 40 countries have legally banned or restricted the use of such bags. So far, Russia has not imposed any official restrictions on using primary oil plastic bags.
O`KEY Group S.A. (LSE: OKEY, RAEX – ‘ruA-’) operates under two main formats: hypermarkets under the O`KEY brand and discounters under the DA! brand.
As at 31 December 2019, the Group operates 178 stores across Russia (78 hypermarkets and 100 discounters). The Group opened its first hypermarket in St. Petersburg in 2002 and has since demonstrated continuous growth. O`KEY is the first among Russian food retailers to launch and actively develop e-commerce operations in St. Petersburg and Moscow, offering a full range of hypermarket products for home delivery. The Group operates six e-commerce pick-up points in Moscow and six e-commerce pick-up points in St. Petersburg. The Group operates four distribution centres across the Russian Federation – two in Moscow and two in St. Petersburg. As at 31 December 2019 the Group employs more than 20,000 people.
For the full year 2018, revenue totaled RUB 161,303,411 thousand, EBITDA reached RUB 8,644,008 thousand, and net loss for the period amounted to RUB 599,755 thousand.
The O`KEY shareholder structure is as follows: NISEMAX Co Ltd – 44.79%, GSU Ltd – 29.52%, free float – 25.69%.
All materials published by the Group are available on its website www.okeygroup.lu
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