Detsky Mir Aims to Prove Toys R Russia With $355 Million IPO

Anna Krutevich looks over the displays of diapers, Hot Wheels and baby food at Detsky Mir, a children’s emporium in Moscow’s Aviapark shopping mall, then pulls juice and milk from a shelf. Though the past two years have been tough as Russia has slogged through a recession, the jewelry marketing manager still spends 15 percent of her salary on her toddler even as she scrimps on other purchases. “My son remains my priority,” she says.

It’s consumers like Krutevich that Detsky Mir counted on in its stock offering, priced on Wednesday and valuing the company at almost $1.1 billion. While Russian consumer spending has plunged, Detsky Mir -- the name means “Children’s World” -- has opened more than 200 stores over the past two years, boosting revenues almost 30 percent annually while increasing gross profits per square meter of floor space. The chain plans another 250 stores over the next three years, bringing the total above 700, and online sales are booming.