Ukrainian business continues to suffer losses because of the war. We have recently written about the problems Rozetka has experienced. Today Dmytro Derevytskyi, Chairman of the Board of Directors of Allo Group. In his post on Facebook he spoke about the company’s current state of affairs and its plans for the future.
As Derevytskyi reports, part of the Allo stores was looted, destroyed by shells, and control over assets in the temporarily occupied territories was lost. More than half of the company’s employees had to be laid off, while the rest are employed on a piece-rate basis. The company hopes to resume employment with most employees as soon as business permits.
Besides, the company’s own imported goods margins have declined critically and there is a problem with renting premises.
“While all businesses are going through difficult times, some are trying to live as if nothing had happened. For example, Allo is under pressure from some landlords, demanding payment for open stores at the usual rate. At the same time, sales have significantly declined in comparison to pre-war levels. If we can’t afford the rent with the current revenue, we’ll have to leave such outlets,” Derevytskyi explains.
Despite the problems with the business, Allo plans to continue its work and help its employees. In addition to piece-rate pay, according to the results of March, Allo reported the payment of financial aid to 3.5 thousand employees in the amount of 25 million hryvnias.
The company has moved most of the goods to the western regions of Ukraine and is now setting up new distribution centers and resuming a steady supply of stores. The stores are gradually opening, there are already about 200 of them. In addition, the online store continues to work.
During this time you can order goods on the allo.ua website or in the app and pick them up at the open locations. By the end of April, we plan to launch ordering on the website/app with delivery to the branches of logistics operators or by couriers. The Allo Marketplace has also resumed its work and now represents the products from about 700 of the company’s partners. Next week we will resume the import of critical items such as power banks, chargers, smartphones, push-button phones, etc. Despite the significant damage, the company is adapting to functioning under the new conditions to save business and jobs and support the state with taxes,” Derevytskyi shared his plans.