Serbian retail chain DIS is betting on two market formats and the introduction of quality products to boost growth after a disappointing 2014.
Initially, DIS’s strategy was to open hypermarkets, located outside the big cities, focusing on low prices and a product offer dominated by Serbian products.
However, the difficult economic situation, which resulted in stagnation of revenue growth for the first time in the company’s 24-year history, led the management of DIS to adopt a new, redefined business strategy in 2014.
Last year, four existing outlets were reconstructed based on a new retail concept, with five more being transformed during the course of 2015. The concept has resulted in a completely changed layout of the interior, from floor to ceiling.
According to commercial director, Nenad Jelić, instead of exclusively focusing on greenfield investments, DIS’s new strategy is now based on two formats: leasing space within small or large shopping malls and opening neighbourhood stores to be closer to the consumer.
Since the start of 2015, DIS has succeeded in opening one store each in the new formats – in April in Čačak (4,000 m2) and recently in Belgrade/Mirijevo (800 m2) – taking the total to 18. A new store will be opened soon in Zrenjanin, as well as another neighbourhood store in Belgrade/New Belgrade.
Another novelty, announced by Jelić, will be the introduction of more premium products, including new foreign brands to Serbia, targeting consumers who can afford to pay more for better quality products.
© 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.
