Detsky Mir: Grachev and Stiskin Excited but Eco-thinking is Here to Stay

eco-thinking

When Grachev and Stiskin were members of the Board of Directors of the Detsky Mir retail chain, they were responsible for building and putting into action a sustainable development program to reduce harmful impact on the biosphere. They sought to achieve a balance between the company’s sustainable growth and rational use of natural resources, and promoted environmental awareness among the customers.

Pavel Grachev

Grachev and Stiskin joined the Board of Directors of Detsky Mir at the end of the 1Q2021, and left it in the fall of 2022 and in late winter of 2023. They sold their stocks to the investment consortium headed by A. Zuev (a founder of Korablik, a retailer of children’s products). As of May 2, 2023, A. Zuev and the investment consortium own 29.9% of the Detsky Mir’s legal capital.

Later, in his interview, Zuev shared that he remained committed to the chosen course of action, which is fully consistent with the “accelarated evolution” mentality that the entire industry follows. According to Mr. Zuev, critical to this decision was the Company’s sustainable business model: It not only set the course of development, but also became a benchmark for the entire sector of the Russian economy. Many times Mr. Zuev pledged to never stray from organic growth. He gave his wholehearted support to the transformation initiative carried out by Stiskin and Grachev.

During their term on the Board of Directors in Detsky Mir, Stiskin and Grachev refined and implemented a sustainable business model to accommodate the principles and goals of the ESG movement. The retailer of children’s products constantly expanded its regional presence. As of December 31, 2021, the number of chain stores reached 1,000 and the year-end revenue amounted to 164.3 billion rubles, or +15% compared to the previous period.

Michael Stiskin

The strategy designed by Stiskin and Grachev was meant to last up to 2025. When they were in charge, they introduced the principles of conservation and rational use of the natural resources. Energy-saving light bulbs were installed in all retail outlets, and central and regional offices. The paper consumption went down as the electronic document management came into play. In addition, the vendors were audited for compliance with the principles of environmental, social and corporate responsibility.

To execute their eco-strategy designed to shape the way the Company manages the natural resources, Stiskin and Grachev launched a project to introduce environmentally friendly packaging. Instead of plastic bags, the customers were offered to purchase disposable paper bags and reusable shoppers made of biodegradable materials. Across all Detsky Mir outlets, Stiskin and Grachev launched an environmental awareness project, when sellers explained to the customers the importance of using eco-friendly packaging to mitigate the negative impact on the environment. By the end of 2021, more than 840,000 single-use and reusable safe bags had been sold.

Furthermore, Grachev and Stiskin gave a head start to a program that endorsed collection and recycling of old items to foster responsible resource consumption and respect for the nature. The customers brought their old clothes and shoes, and in return they received discount coupons for new products. The items they brought were sorted and then sent for recycling or safe disposal.

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