Empik Media & Fashion

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Strategy

Plans for 2010

• Empik – develop the partner stores and increase management of the supply chain effectiveness;
• Smyk – open big box stores in Poland and accelerate expansion in the East;
• Language Schools – accelerate expansion in the East;
• Ulitmate Fashion/Maratex – complete optimisation of brand and store portfolio, focus on medium-priced brands – mainstream fashion

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This segment is composed of the following operational companies: Empik Sp. z o.o. (a chain of stores in Poland which offers the complete selection of press, books, CDs, DVDs, games, stationery and tickets), Empik.com (a dynamic online distribution channel of Empik, one of the top visited e-commerce sites in Poland), Empik Cafe (a chain of cafés in Poland offering excellent combination of a traditional café and culture), LEM Sp. z o.o. (games distributor) and Pol Perfect (press distributor).

The segment consists of the international chain of Smyk stores and the Spiele Max chain which operates on the German market. Smyk offers a wide selection of toys, school accessories, books, multimedia, accessories for infants, as well as clothes and shoes for children up to 14. The chain operates on the Polish, Russian, Ukrainian, Turkish and Romanian markets. The chain has its own brands (COOL CLUB – clothing and SMIKI – toys), available only in the chain stores. Spiele Max is the leader in the German retail sector of children products, such as toys, prams or furniture for babies. Since it was acquired by Smyk, the range of products has been expanded by clothing.

A network of language schools which operates in Poland (LSP), Ukraine (LSU) and Russia (LSR). The classes are conducted by qualified teachers and supervised by experienced methodologists. The educational process is widely based on the modern technologies and innovative teaching methods. The schools operate under the brands of empik school and Speak Up.

This segment includes operating companies which deal in retail (Ultimate Fashion, Maratex) and wholesale (Optimum Group). Ultimate Fashion is the Polish distributor of fashion brands such as New Look, Peacocks, River Island or Aldo. Maratex, which operates in Russia and Ukraine, manages the chain of apparel stores, such as Peacocks, River Island, Aldo, Orsay, Bodique or Esprit. Optimum Group distributes luxury cosmetics of prestigious brands and branded sports apparel.

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