Eurocash Group’s new strategy
Eurocash Group published in its latest report its plans regarding development of the company’s strategy. The list of goals for the nearest future is not detailed yet, but the most important actions may include gaining new investors or reorganisation of the Group.
The information was announced by the Management Board just after a preliminary analysis of the benefits of the planned changes. The main factors taken into account were the economic situation and the increase in the company’s value, as well as the consistency of all intentions with the Group’s current strategy. The actions will be based on establishing cooperation with new investors, both within the company and in specific segments of the company. The Group’s reorganisation, aimed at putting the prevailing system in order and streamlining the company’s operations, also proved to be correct.
The first changes have been implemented
At the end of 2020, the Group acquired the franchisees of the Delikatesy Centrum grocery store chain. Last month, Eurocash announced the acquisition of 50% of shares in the company owning the Arhelan chain of stores. They are to operate within the structures of Delikatesy Centrum chain. These actions are the first step in the company’s long-term strategy.
PMR expert’s view
Retail Business Unit Director
According to PMR data, Eurocash is the second largest retail chain in Poland. In terms of revenue, including the estimated revenue of franchise and partner networks, it is second only to Jeronimo Martins. In such terms, in 2020 Eurocash’s retail revenues grew faster than the grocery retail market in Poland.
Eurocash’s strength is the multiplicity of formats and locations. The franchise and partner networks supported by Eurocash bring together around 16,000 independent shops operating under such brands as abc, Groszek, Delikatesy Centrum, Lewiatan, Euro Sklep or Gama. On the other hand, this may cause problems related to the heterogeneous appearance of shops and the lack of a unique, well-communicated offer (also when it comes to private labels). Operating such a large and heterogeneous network may also be a problem for Eurocash in organisational terms, but it represents a great potential for future growth.