Pero Martinho Retailing in Poland – case of the Eurocash Group

Cash&Carry Franchise systems Distribution 1

Pero Martinho Grupa Eurocash, Członek Zarządu

Retailing in Poland –

case of the Eurocash Group

Eurocash Group


2

2

11

4

5

7

5

3

7

3

5

5

9

11

11

15

17

28

3

5

5

7

10

11

17

19

32

0 5 10 15 20 25 30 35

Selgros

Intermarche

Metro (Makro C&C FMCG)

Carrefour

Tesco

Auchan + Real

Schwarz (Lidl+Kaufland)

Eurocash (pro-forma)

Biedronka

2013 2012 2006

Eurocash – the leader in branded goods distribution

* Data for 2006 presents Metro as Makro C&C + Real and Auchan without Real

Consolidation of food distribution in Poland

Organic growth

- further expansion of all formats

- increasing clients loyalty

- introducing new fresh categories

Inorganic growth

- market consolidation

- introducing new retail formats


Eurocash Group market share estimated at app. 24%

(with Kolporter pro-forma sales)

Eurocash Group 24,2%

0

Makro-FMCG (C&C) 6,2%

Selgros -FMCG (C&C) 3,0%

Polski Tytoń (T) 3,5%

Bać-Pol 2,1% Alti (A;E)

1,3%

PHUP Gniezno 1,3%

Others 58,3%

Eurocash is the largest wholesaler in Poland, actively consolidating the market


Already today franchisees of Eurocash

sell more branded products ….

….than all discount chains in Poland

offering suppliers:

Distribution of brand

Choice for consumer

Product placing and promotions

Eurocash – the biggest retailer of branded goods – without owning stores!

10 000 stores

PLN 16 bn Source: Company data, Eurocash estimates

Retail Sales of Branded Products

Franchise Chains Hard Discounters

2 300 outlets

PLN 14 bn

The Future of retail are…

…„traditional” stores!


Small stores answer consumer needs

PROXIMITY TIME SAVING QUALITY

DIVERSITY

NEW FOOD RETAIL

BELONGING


World giants CHANGE FORMATS

The trend is global… and retailers adapt


Small format – the strongest segment in Poland

59 57 55 53 51 48

10 12 14 15 18 20

32 31 31 31 32 33

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2007 2008 2009 2010 2011 2012

Food retail structure

Duży format

Dyskonty

Mały format


Profitability means profit / resources

What are the cost drivers? The most important resources

retailers use?

How to evaluate profitability in retail?

Inventory Space People


Profitability in Retail

Gross margin return on

Space (GMROS)

Inventory (GMROI)

Labour (GMROL)


Profitability in Retail

% Gross

Margin

Sales/ inventory

Sales/m2

Sales/FTE

GMROI

GMROS

GMROL

m2/ FTE

m2/ inventory


Analysing a retail business – the Pentagon and the Triangle

Place

Product

Price People

Promotion

Systems

Suppliers Supply chain


Eurocash group – different business units

Eurocash cash&carry Eurocash Alkohol Eurocash Dystrybucja 5 thousand SKUs. Fast movers. Few

regional products. Few fresh

products.

10 thousand SKUs in Alkohol. All

sizes, all price points. Imported and

national

12 thousand SKUs. All categories

food, drinks and detergents. Sizable

regional products. No niche products

Best basket shopping, across all

categories, both in promo and normal.

3 points below Makro

Hi-Lo strategy. Discounted

promotions, stable normal prices. Low

prices in mainstream connected with

sales of higher margin products.

Stable prices per producer.

Competitive proces with other active

wholesalers, 2-3% more expensive

than cash&carry

Bi-weekly folders. Everyday sms.

Customer card with CRM fueled

promotions

Packs – low margin with high margin

products. Sales reps can negotiate

with customer

Weekly promotions to franchisee’s

consumers. Agressive pricing on

promotions. Promotions connected

with sales objectives

190 depots in towns > 25ths. Store

size 1500sqm.

60 depots delivering to customers

with own transport

8 distribution centers with 2

temepratures delivery trucks

Self service. Check-out only contact.

Abc customers have program with

meetings, trips and some training

Sales rep dedicated and

knowleadgeable on alcolhol. For

restaurants and bars same day

delivery, even small quantities.

Universal sales rep. Franchise

systems with huge support: adviser,

promotions, marketing, finanse.

Frequent meetings, training.

DID you EVER considered becoming an

ENTREPRENEUR?

RICHARD BRANSON

„Across its companies, Virgin employs approximately 50,000 people, in 34 countries and global branded revenues in 2011 were AROUND £13BN ($21BN)”

SUPERMARKET OWNER THE TRUTH!!

MARKET ANALYSIS

MARKETING

PRODUCT DEVELOPMENT

PRODUCT MANAGEMENT

RETAIL

DISTRIBUTION CHANNELS

KEY ACCOUNTS

FMCG

SUPERMARKET OWNER KEY CUSTOMER FOR FMCG

WŁAŚCICIEL

MARKETING

• Advertising, PR, merchandising, promotion tools

SOCIOLOGY

• Relations with local institutions and the community

HR

• Motivation systems

MICROECONOMY

• Financial decision taking

NEGOTIATIONS

• Agreements with producers and distributors

SPORT

• Hunger for success. competitiveness

ECOLOGY

• Environmental impact

MATHS

• Finance management

SUPERMARKET OWNER THE TRUTH!!

REAL MANAGER – who takes her own decisions

Creates sales of 5 MLN ZŁ /store

MANAGES TEAM of 6 – 20 persons per store

LEADER in her community and an innovator

PASSIONATE about its interests

Training in Entrepreneurship Academy

Practice as store manager

Work as deputy store manager

1 week 2 weeks 1 week 2 weeks 2-5 weeks

Practice in model store

Brand Strenght ABC Entrepreneur,

Retail financials

http://www.google.pl/url?sa=i&rct=j&q=abc+przedsi%C4%99biorczo%C5%9Bci&source=images&cd=&cad=rja&docid=HVz0JXAiLf21pM&tbnid=Ju0l-Z8OOP-l5M:&ved=0CAUQjRw&url=http://www.wanir.edu.pl/pup3.htm&ei=q8MIUsO-FI_1sgarqIHwCA&bvm=bv.50500085,d.Yms&psig=AFQjCNFBdxi5vGySWL1ZXB-5wrP-hHViBw&ust=1376392479182646

Who are we looking for?

YOU IF YOU WANT TO BE INDEPENDENT AND TURN MILLIONS

0% PROMISES, 100% BUSINESS!

[email protected]

www.delikatesy.pl

www.eurocash.pl

517-011-407 and 519-036-410


Do you accept the challenge?

Write and send to me:

Communication plan for 1 minute convenience stores

Logistics for convenience and logistics for small

supermarkets: what’s the difference and how to ensure they

are effective?

Role of the private label in a convenience store and in a small

supermarket

The business plan of your Delikatesy Centrum store

Or other of your choice…

For the two best we’ll offer…

one-month paid (1500zł) internship in Eurocash

[email protected]


Pero Martinho Grupa Eurocash, Członek Zarządu

Retailing in Poland –

case of the Eurocash Group

Pero Martinho Retailing in Poland – case of the Eurocash Group

Documents

Transcript of Pero Martinho Retailing in Poland – case of the Eurocash Group