TSUM Kyiv CEO speaks about development strategy and plans for 2025
What: TSUM Kyiv demonstrates resilience with double-digit growth and successful business model diversification despite wartime challenges.
Why it is important: The success demonstrates how department stores can thrive through business model diversification and digital integration, even in challenging markets, as seen in successful transformations globally.
TSUM Kyiv has demonstrated remarkable resilience and growth despite wartime challenges, successfully expanding its customer base by 52,000 new clients in 2024 while maintaining double-digit growth that exceeds pre-war 2021 performance. The department store's success is built on a diversified business model encompassing six key areas: rental, own imports, commission trade, online marketplace, and own brands launched in 2023. This strategic approach has enabled TSUM to maintain flexibility in responding to market changes while expanding its brand portfolio to over 400 international and Ukrainian brands under direct management. The retailer's focus on balancing luxury, premium, and upmarket segments, with approximately 20% allocated to luxury brands and 30-40% to premium brands, has proven effective. Their commitment to development extends to significant investments in digital solutions, team training through TSUM Academy, and employee well-being initiatives.
IADS Notes:TSUM Kyiv's successful crisis recovery strategy mirrors global department store revival trends seen throughout 2024-2025. Their multi-model business approach aligns with successful transformations noted in April 2025, where department stores are embracing experiential retail and digital integration. The focus on balanced brand portfolio management reflects successful strategies seen in January 2025, where retailers like BHV achieved profitability through strategic merchandise optimisation. TSUM's emphasis on employee development and digital solutions parallels approaches highlighted in February 2025, demonstrating how successful retailers are combining workforce investment with technological advancement to drive recovery.
