With 47 hypermarkets and supermarkets, the store chain is a retail division of a commercial real estate developer that builds and rents out shopping centres and store buildings.
The parent company owns all retail spaces of the chain.
In terms of frequency of store visits, the hypermarkets are close to convenience stores. A typical customer visits the store three to four times a week, because hypermarkets are located in residential areas.
The retailer has 34 self-manufacturing production halls, including 30 full-cycle ones. The company produces bakery, pastries and confectionery products, semi-finished meat products, salads and prepared meals.
Since 2017, competitive pressure from countrywide retailers significantly increased.
Despite large competitors' activities, the company managed to successfully maintain customer loyalty through private labels (the chain produces about 1,700 items), wise pricing strategies and excellent customer service based on efficient business processes.
Store managers spend up to 80 percent of their working time at the shopping area, not in their office. They execute a program called "600 points to check"; these are the parameters that the store manager inspects daily.
These points to check include the freshness of food, cleanliness, merchandising quality and so forth.
During the daily inspection, the store manager fills out a checklist and notes things to improve.
● Eastern Europe.
● Hypermarket chain and supermarket chain.
● 47 brick-and-mortar stores in 12 cities.
● 6,000+ employees.
● 35,000 SKUs.
● 1,700 private label products.
● Self-manufacture: 34 production halls produce 60 tonnes of food daily.
Pricing was an essential part of competitive success.
Due to the skills, experience and dedication of the retailer's experts, the chain's pricing was efficient despite poor automation.
Over 28 years, the retailer's team developed a large, partially decentralized system of complex pricing rules, utilized following parts.
✓ Category level and specific item level pricing matrixes which determined sets of vary markups.
✓ Competitor price tracking.
✓ KVI pricing.
✓ A system of continuos promo actions, when the end date of the action depends on the promo performance and inventory balances.
✓ Manual price adjustments at the category managers level.
✓ Manual price adjustments at the store level, based on the competitor tracking results.
Partially automated, this pricing system ensured good sales and profits, and helped to effectively compete with larger retail chains.
The retailer's team and Imprice experts faced a serious challenge, to completely rebuild an effective pricing system without spoiling anything, and to find points of growth, while having an already "high base".