Croatian retailer Konzum is reporting an 20.9 per cent average growth of sales in Mercator shops in June 2015, one year after the merger with the Slovenian peer.
Before the takeover, the same stores registered an average drop of 17 per cent compared to the same period a year earlier, according to Konzum president, Darko Knez.
He added that Konzum’s first half revenues in Croatia are up by 10 per cent y/y, while regionally revenues should surpass €4 billion with a market share of over 30 per cent.
Since September 2014, Konzul has integrated a total of 74 Mercator stores, one warehouse and two wholesale centers, as well as 133,953 m² of retail space.
During the merger, the focus was on rebranding, the harmonization of IT systems, the transfer of the central purchasing system, as well as on the implementation of Konzum’s customer loyalty program.
New departments were introduced in former Mercator stores, such as for organic products, fresh chopped salads and meat ripening chambers. The visual standard and layouts were changed, while the number of segments and shelves was increased, improving the quality and increasing the offer of products.
However, some of the changes have been criticised, especially the reduction in the offer of Slovenian products. State broadcaster Radio Televizija Slovenije reported that this is particularly evident in stores in Bosnia and Herzegovina, where only a few Slovenian products can be found on shelves.
© 2015 European Supermarket Magazine – your source for the latest retail news. Article by Branislav Pekic. To subscribe to ESM: The European Supermarket Magazine, click here
