M.Video forecasts sales decline for 2009

M.Video expects comparable sales to decline 5-10% this year, but hopes to keep gross margins between 24.5-25%, the company’s management told analysts. In the third quarter 2009 comparable sales decreased 20% and total revenue by 5% to RUB19.1 billion (USD619 million). According to the company’s CEO Alexander Tynkovan, the capacity of Russia's market of household appliances dropped more than 30% in the first nine months of this year and he does not expect significant recovery in the fourth quarter. However, the retailer plans to open over 20 stores next year, he said.