Press Releases

‍This summer, more often than the previous one, we look for products associated with health or with pleasant food in stores. Instead of cooking at home, we are much more willing to use catering services. We also think about reducing the consumption of sweets, snacks and alcohol. What do these changes in consumer behavior mean for nearly 85,000 local stores?

Neighborhood stores benefited from the fact that during a period of restrictions on free movement and social isolation, they were the closest to consumers' homes, facilitating quick and safe shopping. However, after more than a year of living in the conditions of the epidemic, Poles began to return to pre-Covid times. This can be seen, among others, in the results of an internal survey conducted in May of this year among Eurocash Group employees on a sample representative of the national population. More people than there were last year declare that this summer they will be making small purchases for a home for 1-2 days (an increase of 5 percentage points) or small purchases “on the way” (an increase of 5 p.p.). On the other hand, fewer people show a desire to make large purchases for stock once a week (decrease of 4 p.p.) and very large purchases less often than once a week (decrease of 6 p.p.).

But returning to small and frequent purchases instead of large and much rarer are not all signs of longing for normality. It is also clear that again we will consume less at home and more outside. Compared to last year, the interest of the respondents to food in catering establishments increased by as much as 24 percentage points.

In general, we want to spend more time away from home. The massive return of Poles to travel can also be seen in the results of the Ipsos survey “Covid 365+” from March this year[1]. Taking various activities related to spending time outside the home within 3 months of the study was declared by 21 to 28% of the respondents, and an additional 14-33% planned to take them within 6 months.

In the group of Eurocash employees surveyed, the appetite for frozen food and ready meals is noticeably decreasing. Compared to 2020, interest in cooking at home decreased by 11 percentage points, by 8 p.p. in buying frozen ready meals and by 7 p.p. in buying fresh, packaged ready meals. Consumers from Eurocash also declare that this summer they will be less interested in sodas, cookies, sweets, chips, snacks and alcohol. It is expected to increase their propensity to buy fresh fruits and vegetables, ice cream, fresh meat and fish, and dairy and cheese.

The statements of the respondents testify to the fact that in this holiday we are primarily looking for rest and pleasure. More than practical in the period of isolation, ready meals are interested in products whose consumption is simply intended to give pleasure, such as ice cream, yoghurt, cheese and other dairy products.

Changes in consumer interests can also be seen in other studies. From NielsenIQ data presented in the webinar “Snack Market. Sweet, salty... healthy?” March 2021 shows that interest in products perceived as healthier, such as nuts and seeds and mousses, is growing, but even greater increases are recorded by BIO products. This is best seen in the example of granola bars, which lost almost 25% of the market by March 2021, but grew by almost 40% in the BIO category.

Dragees, nachos, milk chocolates, bitter and white chocolates, and chilled bars have increased in the category of sweets that are losing market. In the opinion of Nielsen experts, the increases are recorded by individual items that can be used by consumers to share with others, such as wafers in multipacks (sales increase by 2.6%) and jelly (+5.5%) and marshmallows (+16%).

“Local stores should now get support from manufacturers of those items that may experience a decline in summer sales, such as sweets, salty snacks, wine and large beverage packages. Promotions, novelties and holiday assortment can be prepared in advance to keep consumers interested — says Dominik Kasperek, Director of Central Purchases of the Eurocash Group.

The importance of promotions in the sale of many product categories is evidenced by, for example, pralines. According to NielsenIQ data, from April 2020 to March 2021, almost 54% of them sold through promotions. In the same way, consumers found more than 47% of chocolates, almost 35% of chips and popcorn, and more than 30% of chocolate bars.

According to the analysis of CMR sales data, in grocery stores up to 500 sq. m. approximately 50% of the sales value during the holiday period are generated by alcohol, tobacco and beverage categories. Other categories important for the overall sales value of local stores are: sweets, dairy products, cereal products, spices and culinary additives, salty snacks, ice cream and fats.

In general, the holiday period has the largest, approx. 27% share in the annual revenues of stores up to 500 sq. m. According to CMR data, from June to August they sell 57% of ice cream, 37% of ice tea, 35% of water, 32% of isotonics and energy products, and 31% of soft drinks and beer. However, the record holder is tanning products, of which 89% are sold during this period.

[1] Ipsos, “Covid 365+” study, March 2021, webinar 31.03.2021. https://www.youtube.com/watch?v=tQIrVfzgIGo

Eurocash Group is the largest Polish company engaged in wholesale distribution of food products and marketing support for independent Polish entrepreneurs conducting retail activities. Franchise and partner networks supported by Eurocash bring together more than 16 thousand independent stores operating under brands such as abc, Groszek, Delikatesy Centrum, Lewiatan, Euro Sklep and Gama.

The Eurocash Group, as the only company from Poland, together with 26 other companies from all over the world, was involved in the film project of the Consumer Goods Forum “Better Lives Through Better Business” (trans. A Better Life, Through Responsible Business) produced by BBC StoryWorks Commercial Productions. Its aim is to show how companies operating in the food production, processing, distribution and trade market contribute to improving the quality of life of people. Video about Eurocash (available HERE) shows that the Group, by supporting the entrepreneurship of its employees and customers, influences the development of independent trade, which develops local communities and regions in Poland.

- We decided to participate in this project because usually, when we talk about sustainability, most of us think about environmental issues — reducing carbon dioxide, not consuming food, reducing the consumption of raw materials and natural resources, but rarely about entrepreneurship. — says Pedro Martinho, Member of the Management Board of Eurocash Group, responsible for CSR. We, on the other hand, believe that what has been happening in Poland over the last decades is unique and worth showing to viewers around the world. Independent entrepreneurs, in which we have believed in the Eurocash Group for more than 25 years, have a more than 40% share in the Polish FMCG market, thus providing access to the necessary products for 35 million Poles daily*. They employ thousands of people, pay taxes locally, provide regional producers with distribution channels for their products, thereby contributing to the development of local communities. Hardly anyone is also aware that independent trade ensures a fair distribution of wealth, why? If discounters have, for example, a 90% market share, then only a handful of large manufacturers cooperating with them will develop. Secondly, the taxes of such networks will only feed the budgets of large cities, and the profits will go to a narrow circle of people - adds Martinho.

In a video about Eurocash, Luis Amaral, CEO and main shareholder of the company, explains Eurocash's mission as a wholesaler that provides small independent entrepreneurs — including through access to new technologies and tools to support sales — the opportunity to compete and develop their businesses in the retail market. Thanks to this, consumers can shop in modern stores, in the channel, which provides a wide and competitive selection of products, regardless of where they live.

In the film we will also see an entrepreneur — Jerzy Rogala, who runs his shops in the south of Poland. Its facilities benefit from both procurement, marketing and technological support from the Eurocash Group. On the other hand, they sell products purchased from regional food suppliers, which makes it possible to meet the needs of consumers, for whom local products are increasingly important.

The Consumer Goods Forum also presented the story of Marta Królikowska, who at the age of 23 initiated the creation of abc network on wheels in the Eurocash Group. In this case, supporting entrepreneurship within the company contributed to the creation of the largest mobile retail network in Poland, which sells FMCG products in small towns and villages in Poland, where there are no fixed stores.

- Independent trade is the best showcase of Polish entrepreneurship — and what's more, it has a real impact on local communities and economies. We hope that this video will allow consumers to understand that shopping in a store run by, for example, their neighbor, contributes to a better life for everyone around them — adds Martinho.

All films in the series “Better Lives through Better Business” are available here:

https://www.theconsumergoodsforum.com/better-lives-through-better-business-docuseries

*data from the Eurocash Group Responsible Community Report for 2020 https://media.eurocash.pl/aktualnosci/658311/grupa-eurocash-podsumowuje-rok-epidemii-i-nowej-normalnosci-spolka-opublikowala-raport-z-dzialalnosci-niefinansowej-za-2020-rok

Eurocash Group is the largest Polish company engaged in wholesale distribution of food products and marketing support for independent Polish entrepreneurs conducting retail activities. Franchise and partner networks supported by Eurocash bring together more than 16 thousand independent stores operating under brands such as abc, Groszek, Delikatesy Centrum, Lewiatan, Euro Sklep and Gama.

85 thousand[i] Independent stores are the largest retail channel in Poland, but only 15% of large suppliers have as good offers for it as for discount stores. Who treats local stores fairly today, shows the latest results of the Righteous in Business ranking, prepared by the Eurocash Group and the Polish Chamber of Commerce.

The analysis includes as many as 180 largest suppliers of popular categories of food products and chemical and hygiene products. Analysts consider this manufacturer to be fair, which offers similar conditions to different types of stores: comparable prices, similar coverage, a similar level of sales development in all channels and the same products everywhere.

“During the period under the latest assessment, from April 2020 to March 2021, due to restrictions in economic activity and social isolation, consumers' interest in the offer of stores located closest to home increased significantly. The vast majority of them are independent stores, where all the most popular products should be available, at attractive prices — says Dominik Kasperek, Director of the Central Purchasing Department of the Eurocash Group. So which suppliers treat local stores and their customers best?

Leaders of Equal Treatment

It turns out that in local stores it was possible to make purchases cheaper than in discount stores. Such offers usually came from smaller suppliers, but sometimes also from such market giants as: Prymat, Nałęczów Zdrój, Mlekpol, Asahi, Pernod Ricard, Stock and Procter & Gamble. Sometimes the names of these companies say little to consumers, but behind them are the most popular brands of products in Poland. It is enough to realize that thanks to these suppliers from purchases in local stores from April 2020 to March 2021, the consumer who uses Ariel washing powder, rinses with Lenor, buys Naturella napkins, drinks Bison beer, and spices the food with Prymat spices should be the most satisfied. If he wants something stronger, he reaches for Żyżdkowa vodka or Ballantines whiskey. He is hydrated with Cisowianka, and if he drinks milk, then Latate.

In local shops, due to very good price offers, it was also worth looking on the shelves for ketchups and mayonnaise from Unilever, Eko Mak pasta Babuni pasta, Prymat mustard, canned fish Thai Union Group and Salmon, Zbyszko carbonated drinks, Victoria Cymes juices, canned vegetables from the Charsznicke Nature Fields, yogurts and milk Mlekovity, milled Bakoma desserts, Sobik and Lumiko butter, Angel Camacho jams (Stovit), Tchibo and Woseba coffees, Bifix Wojciech Piasecki teas, Maspex and Sante breakfast cereals, Copernicus biscuits, Sofidel toilet papers ( Regina, Soft & Easy), Henkel dishwashers (Pur, Somat) and Unilever (Signal) and Procter & Gamble (Blendamed) toothpastes.

— The list of attractive offers from the largest FMCG suppliers in local stores is growing year by year, but the ranking results clearly show that most suppliers still favor discounters and supermarkets — says Dominik Kasperek.

Freelancers can sell more

Local stores, despite giving way in many places to the onslaught of discount stores and chain supermarkets supported by some manufacturers, continue to contribute to sales increases in many product categories. Suppliers such as Werner & Mertz, which increased sales of Frosch dishwashing liquids in local stores by as much as 51% during the reporting period, can be enjoyed by local retailers. Sales of Roleski ketchups increased by 21% and Dawton vegetables and Polmos Bielsko-Biała vodkas by 18%. Vortumnus, in turn, boasted a 16% increase in the jam market.

Some suppliers of laundry detergents, fabric rinses, teas, yogurts, canned fish, pasta, butter, milk, dairy desserts, cream, mustard, mayonnaise, soda, praline, spices, whiskey and beer also saw increases of 1 to 14%.

Consumer Reaching Channel

The leaders in using local shops as a channel to reach consumers are beer producers. The Asahi and Heineken concern reach 95% of such stores. The same range for its juices and non-carbonated drinks has been built by Maspex. More than 80% of independent stores are reached by: Pepsico and Coca-Cola with carbonated drinks, Danone with mineral water, Toruń Zakłady Matériaux Odresrunkowy with feminine hygiene products, Pepsico with chips, Mondelez International with chocolates and cookies and Nestle with coffees. A wide range does not always mean an attractive product range, but at least for the distribution, the mentioned manufacturers got the most points in the ranking.

“In every product category, there are big suppliers who treat customers of all stores the same. It is they who occupy the highest places in the ranking. The others do not want to have or at the moment have no idea how to use the potential of independent trade, which in such an extensive form as in Poland does not exist in any other European country — concludes Dominik Kasperek.

The “Equal in Business” ranking has been developed since 2017. Its aim is to level the playing field of independent stores in competition with centrally managed chains.

[i] Source: NielsenIQ, Small Format - contains large, medium and small grocery stores with an area of up to 300m2, excluding discount stores, including chemical and cosmetic chains selling food products; kiosks, shops at gas stations and wine and confectionery.

Eurocash Group is the largest Polish company engaged in wholesale distribution of quickly marketable food products, household chemicals, alcohol and tobacco products and marketing support for independent Polish entrepreneurs conducting retail activities. Franchise and partner networks supported by Eurocash bring together about 16 thousand independent stores operating under brands such as abc, Groszek, Delikatesy Centrum, Lewiatan, Euro Sklep, Gama, Duży Ben and Kontigo. In order to achieve a scale appropriate to ensure the competitiveness of its customers, the Eurocash Group is also developing a network of its own retail stores.

‍Until June 27 via the website www.herosiprzedsiebiorci.pl Retailers who deserve to be distinguished in the competition can be submitted. Internet users and an independent jury will select 100 laureates by mid-August, who will receive cash prizes worth almost PLN 700,000. So far, there are more than 800 entrepreneurs on the list of candidates.

The Eurocash Group wishes to draw attention to the exceptional commitment of store owners as part of the “Heroes of Polish Entrepreneurship” competition. — In this year's edition of the competition, we want to recognize and reward Polish independent entrepreneurs by showing the results of their daily work. We will recognize the owners of local stores for their business courage, motivation to grow, innovation, perseverance in action and responsibility for others — says Marta Gampf, Marketing Director of the Eurocash Group.

Running a store undoubtedly requires effort, but it is thanks to it that consumers can shop close to home, comfortably and safely. Independent trade supports thousands of families and creates jobs for others. It is of great importance in the distribution of products of regional producers and in supporting initiatives of local communities. At the same time, it often has an unequal battle with centrally managed supermarket chains. Meanwhile, mainly thanks to the owners of about 85 thousand local shops, 18 million Poles can walk to the nearest shopping point at most 5 minutes on foot[1]. It benefits from the determination and diligence of independent entrepreneurs.

It also takes a lot of effort, passion and commitment from independent store owners to establish and maintain close relationships with customers. This factor is mentioned by entrepreneurs as the second most important in the development of the store, right after a good offer. Many of them, taking care of relationships, must simultaneously manage the store and work physically on its supply and customer service.

Additional measures were forced by the epidemic. According to GfK's latest “Strategic Report”, store owners have taken up the fight to strengthen their position in the market. This was reported by 91% of independent retailers. Almost half of them focused on high quality service, and 42% on high quality products. Few decided to extend the working hours of stores, organize their own promotions or look for cheaper suppliers. Almost one in five store owners worked every Sunday, and more than one in ten were forced to lower their own margin.

[1] GfK study commissioned by the Eurocash Group

Eurocash Group is the largest Polish company engaged in wholesale distribution of food products and marketing support for independent Polish entrepreneurs conducting retail activities. Franchise and partner networks supported by Eurocash bring together more than 16 thousand independent stores operating under brands such as abc, Groszek, Delikatesy Centrum, Lewiatan, Euro Sklep and Gama.

‍On June 21st in Poland we celebrate Entrepreneur's Day. This is a holiday for all business owners, of which more and more come year after year. The vast majority of enterprises operating in Poland (99.8%) are micro, small and medium-sized enterprises[1]. Every fourth Polish company operates on the trade market.

The survey “Entrepreneurship of Poles” conducted last year by IQS for the Eurocash Group, which has been supporting independent entrepreneurs running local retail stores for 26 years, shows that up to half of surveyed Poles aged 16-65 consider themselves entrepreneurs[2]. More than 40% of those surveyed believe they have the skills and qualifications to run a business. As many as 31% of Poles plan to open their own business within the next five years. Interestingly, visible entrepreneurial attitudes are observed in all age groups.

Companies in Poland — the most interesting data

The entrepreneurship of Poles is also confirmed by the data. In 2008, there were 1.86 million enterprises in Poland, and 10 years later, in 2018, there were already 2.15 million — an increase of 15.5%. The micro, small and medium-sized enterprises sector accounts for the vast majority of Polish companies — 99.8%. Among them, the largest group are micro-enterprises — 96.7%^[3]. The largest group of companies in terms of sector is service companies — 52.1%. One in four companies operates in the area of trade (23.6%) and one in eight in construction (14.1%)^[4].

Polish companies also account for a huge part of the national GDP — as much as 72.3%. Of this, small and medium-sized enterprises generate close to every second zloty to GDP (49.1%), and micro-enterprises generate about 30.3%^[5].

Characteristics of Polish entrepreneurs

According to the study “Entrepreneurship of Poles”[6]Polish entrepreneurs are characterized by perseverance, as indicated by 89% of respondents, and leadership skills (73%). Risk-readiness attitudes were less common among those surveyed (although still more than half).

And what is entrepreneurship according to the Poles? This is above all creativity, which was indicated by as many as 37% of those surveyed in the aforementioned Eurocash Group survey. Besides, entrepreneurship, according to Poles, is also: consistency, taking risks, making a profit and the ability to calculate rationally.

Analyzing the entrepreneurial attitudes of Poles, it can be seen that the youngest are most focused on achieving higher profits, they are more likely to look for opportunities. For them, a purchase is an investment that they do not want to lose. Meanwhile, older generations are more cautious in their behavior — for example, they are much more likely to cut back on their spending and stick to the budget plan.

The impact of entrepreneurs on local economies and communities

Entrepreneurs make a huge contribution to the development of the Polish economy as a whole, but also to the development of local communities, in the place of their activity. An excellent example of this is independent shops, which are an important part of the life of nearby residents, especially in small towns, generate revenues to regional budgets and create thousands of jobs.

To support entrepreneurs and strengthen the position of independent trade, the Eurocash Group invites owners of independent stores and their customers to participate in the competition “Heroes of Polish Entrepreneurship. The company is still waiting for applications until June 27. As part of this year's edition of the action, the organizer will reward as many as 100 Heroes. The total prize pool is almost 700 000 PLN!

For “young” entrepreneurs, Eurocash recently announced a startup competition “Heroes at the Start”. The project, designed for participants aged 16-26, is an opportunity to obtain financing for their business, but also a chance to gain experience and knowledge in the field of developing their own business. The group is waiting for applications from “young entrepreneurs” only until July 11. The total prize pool is PLN 75,000.

More information at: https://www.herosiprzedsiebiorczosci.pl/#/ and https://herosi.akademiaeurocash.com.pl

[1] PARP, Report on the state of the small and medium-sized enterprises sector in Poland 2020, https://www.parp.gov.pl/storage/publications/pdf/ROSS-2020_30_06.pdf .

^[2] IQS for Eurocash Group, Entrepreneurship of Poles, April 2020.

^[3] PARP, Report on the state of the small and medium-sized enterprises sector in Poland 2020, https://www.parp.gov.pl/storage/publications/pdf/ROSS-2020_30_06.pdf .

^[4] Ibid.

^[5] Ibid.

[6] IQS for Eurocash Group, Entrepreneurship of Poles, April 2020.

Eurocash Group is the largest Polish company engaged in wholesale distribution of food products and marketing support for independent Polish entrepreneurs conducting retail activities. Franchise and partner networks supported by Eurocash bring together more than 16 thousand independent stores operating under brands such as abc, Groszek, Delikatesy Centrum, Lewiatan, Euro Sklep and Gama.

‍“Heroes of Polish Entrepreneurship” is an annual, nationwide competition aimed at owners of local retail stores cooperating with the Eurocash Group. Until June 15, retailers who, in the opinion of their customers or colleagues, deserve such a distinction, can be submitted. From the submitted entries, Internet users and an independent jury will select 100 laureates. The winners will be rewarded with a total value of almost 700 thousand PLN.

- In this year's edition of the competition already in its name “Heroes of Polish Entrepreneurship — we appreciate the owners of local shops” you can see what our goal is. We want to recognize and reward independent entrepreneurs and their commitment to their daily work. We will highlight the owners of local stores who are characterized by great business courage, motivation to develop, innovation, perseverance in action and responsibility for others. These characteristics translate into the stores they run that stand out in the local market. They are modern, have a very high level of customer service and are an important part of the community. Consumers notice this, which is why they themselves are happy to submit entrepreneurs to our competition — says Marta Gampf, Marketing Director of the Eurocash Group.

This year, traditionally, the competition provides for a very attractive prize pool: 75 distinctions of PLN 7,500 and 25 prizes of PLN 5,000 each. Funds from the winnings can be used for any purpose. So far, more than 600 entrepreneurs have applied for the title of Hero of Polish Entrepreneurship, most of whom are retailers running ABC stores.

Currently, until June 15, the stage of accepting applications through the website is underway www.herosiprzedsiebiorci.pl. The application form on it can be filled in by the entrepreneur himself or by any person who wants to apply for his candidacy: a colleague, a client, a family member. Entries can be submitted in one of five competition categories:

• Business Courage: people in this category make bold moves in the business they run. Entrepreneurs do not pay attention to the adversities that may seem to be an obstacle to achieving success in their business, such as, for example, opening a store near competitors.
• Motivation for development: is a category for people who show determination in their actions. They educate themselves and staff, possibly use such solutions as: trainings and courses organized by the Eurocash Academy of Skills, studies in a dedicated course of the Academy of Skills and the Warsaw School of Economics, conferences. They implement specialized concepts or modern facilities promoted by the Eurocash Group.
• Innovativeness: category for people who implement their own ideas, initiate practical solutions that contribute significantly to the improvement and/or modernization of their store. Innovation is understood in this case as the implementation of not only technological, but also practical solutions, e.g.: expansion of the parking lot, purchase of a meat slicer, etc.
• Perseverance in action: In this category, we reward entrepreneurs who (often despite many adversities) have been operating in the retail market for many years. Regardless of the circumstances, they keep their business at a stable level. Their footprint in the retail market is and will be lasting.
• Responsibility for others: for entrepreneurs who have taken actions aimed at non-business purposes in the past that are relevant to their immediate environment. They regularly support social initiatives, actively participate in the life of the community (not only through financial support), take into account the welfare of the environment, act during epidemics through, for example, collections for doctors or introducing their own additional security in the store.

Verified for the authenticity of the entry - profiles of entrepreneurs will be published on the competition website. They will then be judged by a jury. At the same time (regardless of the Jury's assessment), Internet users can vote for their favorite store owner every day — from July 1 to August 14. Among the voters, prizes will be drawn in kind. The list of honorees will be published on 26 August and the awards will be presented during the Eurocash Academy of Skills Congress scheduled for 29 September.

More information about the competition on the website www.herosiprzedsiebiorci.pl

Eurocash Group is the largest Polish company engaged in wholesale distribution of food products and marketing support for independent Polish entrepreneurs conducting retail activities. Franchise and partner networks supported by Eurocash bring together more than 16 thousand independent stores operating under brands such as abc, Groszek, Delikatesy Centrum, Lewiatan, Euro Sklep and Gama.

‍The Groszek chain, organized by the Eurocash Group, has opened its two thousandth store in Sufczyno, in the Małopolska region. The facility is arranged according to the latest network standards, also has a new visual identification. In addition, it was equipped with an Innovative Trading Platform, which is an integrated store management system from the Eurocash Group. In total, almost 500 stores already use IPH as part of the Groszek chain.

— Our expansion shows that Groszka's business model is working — tells Magdalena Pajor, Director of Franchise Networks at Eurocash Group. Although we have been present in the retail market for 20 years, we are constantly trying to change and adapt to current consumer trends. Our goal — together with the Eurocash Group — is to build a strong and modern network that will provide franchisees with the opportunity to compete with discounts and thus strengthen independent trade in Poland — adds Pajor.

In the 2,000 Groszka store in Sufczyno, customers will find an assortment of all categories, including a wide selection of products from the meat and sausage counter, as well as meats baked on site. Fresh bread is also baked in the shop. It is worth adding that the facility also has a large parking lot.

Two-thousandth Groszek, has a new interior arrangement and visual identification — like 256 other establishments in the network. The rebranding process has been ongoing since October 2020. In addition to the new logo, franchisee stores also benefit from new shop windows, boxes and redesigned interiors. The establishments are equipped with beech wood racks, special designations of racks and promotion zones, as well as additional lighting of specialized meat, vegetable and bakery stands.

The store in Sufczyno also received access to the Innovative Trading Platform. It is an integrated system (based on POS) for store management. It allows, among other things, to easily handle sales transactions, independently implement promotions and adapt them to the needs of local consumers, as well as assortment and documentation management, and data analysis.

The franchisees of Groszka cooperate with the network in the so-called soft franchise model, which means that they have a great influence on the shape of the business. They can benefit from network marketing support, a training package, IT and operational support, and a fresh produce delivery system six days a week, among others. The network also carries out a number of activities aimed directly at consumers, customers of its franchisees, to support their sales and the recognition of the Groszek brand. These include consumer actions, lotteries and competitions.

Eurocash Group is the largest Polish company engaged in wholesale distribution of food products and marketing support for independent Polish entrepreneurs conducting retail activities. Franchise and partner networks supported by Eurocash bring together more than 16 thousand independent stores operating under brands such as abc, Groszek, Delikatesy Centrum, Lewiatan, Euro Sklep and Gama.

• Consolidated sales of the Eurocash Group in the first quarter of 2021 amounted to PLN 5.81 billion. The decrease of less than 2% y/y is mainly related to the high comparative base resulting from purchases made for stock in March 2020.
• Consolidated EBITDA (i.e. operating profit plus depreciation) amounted to PLN 115.9 million, which means a decrease of 8% y/y, mainly due to weaker results of the retail segment.
• At the beginning of 2021, the Eurocash Group implemented a repair program in part of its own stores, which covered 180 outlets.

“Food sales in small and medium-sized stores, in which research agencies include independent retailers, the main customer group of the Eurocash Group, fell by 4.8% in the first quarter of this year compared to the first three months of last year, when we all faced the first wave of the COVID-19 pandemic, accompanied by increased purchases of supplies before the economy froze. Looking at the results of the first quarter of this year, a high comparative base should therefore be taken into account. Against the background of the market, the decrease in sales of the Eurocash Group by less than 2% can be considered a good result — told Jacek Owczarek, Member of the Management Board and Chief Financial Officer of the Eurocash Group. “We felt the biggest drop in sales in Cash & Carry wholesalers, mainly due to the much lower year-on-year demand for alcohol and soft drinks, and in the Eurocash Gastronomy format, due to the restrictions still in force on catering establishments. In the retail segment, we recorded comparable sales year-on-year, and sales to Delikatesów Centrum franchise stores even increased by more than 4%. Sales of the Projects segment increased threefold, mainly due to the consolidation of Frisco — indicated Jacek Ovczarek.

Wholesale: increasing profitability as digitization progresses

In the wholesale segment, the Eurocash Group recorded an increase in EBITDA by 10% y/y to PLN 117.7 million in the first quarter of this year, despite a 4% decrease in sales to PLN 4.18 billion.

— The significant increase in profitability in wholesale is mainly the result of further digitalization, including the dynamic growth of sales through eurocash.pl. Our e-commerce and wholesale digitization solutions are already used by more than 25 thousand entrepreneurs in various distribution channels, which corresponds to 37% of sales of the wholesale segment, which can be realized using eurocash.pl tools — indicated Jacek Ovczarek.

Detail: repair program in the Delikatesy Centrum chain's own stores

External sales realized by the Eurocash Group in the retail segment in the first quarter of this year amounted to PLN 1.48 billion and were at the same level as a year ago (-0.6% y/y). EBITDA of this segment amounted to PLN 35.8 million compared to PLN 60.1 million in the same period of 2020.

“The decrease in profitability is mainly due to the worse results of its own retail stores in the Delikatesy Centrum chain. In terms of efficiency, including sales per square meter, they are inferior to establishments run by franchisees. Our goal is to “equal up” to the best. At the beginning of this year, we implemented a repair program, for which we selected 180 of the weakest performing establishments on the market. In the first phase, we implemented corrective actions in 120 stores. The second phase, scheduled for August, will include another 60 stores — announced Member of the Management Board of the Eurocash Group.

The network of small supermarkets developed by the Eurocash Group at the end of the first quarter of 2020 numbered 1586 stores (976 franchised and 610 own), including 1547 outlets operating under the Delikatesy Centrum brand. The Group's retail segment also includes 433 Inmedio newsrooms.

Projects: strong start of frisco.pl in Wrocław, from May in Poznań, and soon the next big Polish cities

Sales of the Projects segment in the first quarter of 2021 amounted to nearly PLN 119 million and were 212% higher than in the same period of 2020, mainly due to the consolidation of Frisco (since mid-2020, Eurocash owns 100% of the shares of this e-supermarket) and the dynamic development of the Duży Ben liquor store chain.

“Frisco, which has been the undisputed leader on the Warsaw e-grocery market for several years, successfully debuted in Wrocław a few months ago, and in early May it also appeared in Poznań. Ultimately, residents of all major cities in Poland will be able to shop comfortably on frisco.pl. The Eurocash Group's extensive distribution network significantly reduces the costs of Frisco's expansion in other cities — announced Jacek Ovczarek.

The Eurocash Group also plans to continue the expansion of all other concepts developed within the Projects segment: Big Ben, abc on wheels and Kontigo.

Eurocash Group is the largest Polish company engaged in wholesale distribution of quickly marketable food products, household chemicals, alcohol and tobacco products and marketing support for independent Polish entrepreneurs conducting retail activities. Franchise and partner networks supported by Eurocash bring together about 16 thousand independent stores operating under brands such as abc, Groszek, Delikatesy Centrum, Lewiatan, Euro Sklep, Gama, Duży Ben and Kontigo. In order to achieve a scale appropriate to ensure the competitiveness of its customers, the Eurocash Group is also developing a network of its own retail stores.

‍The supermarket chain Delikatesy Centrum, organized by the Eurocash Group, is intensively developing its mobile application. Over the year, the number of its users increased by more than 500 percent. The solution is not only attractive to consumers, but also brings tangible benefits to local store owners. According to Delikatesów Centrum, customers using the app make larger purchases — their value is on average 55 percent higher than the average shopping cart on the web.

More than half of Poles buy with a mobile application

Mobile shopping apps celebrate triumphs. With them, consumers can more easily control spending and benefit from personalized promotions. According to the GfK Shopping Monitor 2021 survey, as many as 59% of people responsible for purchasing FMCG products for their household use the mobile applications of retail chains — and 10% of them declare to use the solution offered by Delikatesy Centrum.

The percentage of users of the application is high both among residents of large cities and small towns. From the PMR report “Retail trade in food products in Poland 2020" it can be found that 63% of consumers use such tools in cities with more than 500 thousand inhabitants, from 200 to 499 thousand — 65%, from 20 to 199 thousand — 58%, and in towns up to 20 thousand — 52%. On the other hand, in the countryside, where local stores predominate, not belonging to centrally managed chains, as many as 49% of customers declare their use of the application. Outlets run by independent Polish entrepreneurs keep pace with the times — they use mobile solutions as efficiently as discounts or hypermarkets, and are able to offer their customers convenient shopping and personalized promotions.

Delicatesy Centrum mobile app in numbers

In line with consumer trends, its mobile application is being developed, among others, by the Delikatesów Centrum network. The Eurocash Group has been investing for years in the development of modern solutions that its customers — in this case the owners of Delikatesy Centrum stores — can use to better meet the needs of consumers. Launched in 2018, the service has been downloaded by more than 1 million customers to date. It is used daily by more than 200,000 consumers shopping in stores belonging to the chain. The application is connected to Delikarta — people who create an account in it automatically join the loyalty program. After registration, they have the opportunity to use all the functionalities of the application, such as: history of purchases and savings or dedicated promotional coupons.

— The consumer mobile application is a response to current trends and needs of store customers. It is also a great tool for entrepreneurs running Delicatesy Centrum supermarkets. The application increases the frequency of purchases, but also the value of the cart — tells Noel Collett, CEO of Delicatessów Centrum at Eurocash Group. Thanks to it, we are also able to monitor sales results more easily and effectively and construct promotions that drive sales in local stores more accurately. By launching further promotional campaigns and improving the functionalities of the application, we give independent entrepreneurs a tool to effectively compete with discount chains — adds Noel Collett.

What's new in the Delicatesy Centrum app

Delicatessen Centrum is constantly developing its application. One of the most popular features are “Catch coupons” — dedicated promotional coupons only for app owners — and the recently completed consumer lottery ZrapPka, in which one of more than 1,000,000 prizes could be won. Scratching was done in an extremely innovative way, because directly on the screen of smartphones. In total, nearly 10 million virtual scratch cards were scrapped in the lottery. The popularity of the shares was directly reflected in the turnover in stores owned by the entrepreneurs cooperating with the network — people taking part in the fun shopped 10.7% more often. Their expenses were also higher — by 12.5%. LFL. The network is preparing the next installment of the ScratPka lottery. It also announces new fun for consumers using the application, including on the occasion of the upcoming EURO 2021 championship.

At the end of 2020, 1,573 stores operated within the Delikatesy Centrum chain, and more than 2.2 million consumers used the Delikarta program.

Eurocash Group is the largest Polish company engaged in wholesale distribution of food products and marketing support for independent Polish entrepreneurs conducting retail activities. Franchise and partner networks supported by Eurocash bring together more than 16 thousand independent stores operating under brands such as abc, Groszek, Delikatesy Centrum, Lewiatan, Euro Sklep and Gama.

‍Innovative Trading Platform (IPH) is another new technology developed by the Eurocash Group for entrepreneurs running retail stores. It is an integrated store management system that connects store owners with their customers, as well as manufacturers. It allows, among other things, easy handling of sales transactions, independent implementation of promotions offered directly by suppliers, management of assortment and documentation, and data analysis. IPH has already passed the testing phase — currently 1,400 stores use it, including ABC, Groszek and Euro Sklep. By the end of 2021, the group plans to increase their number to 4,000 outlets.

— This is an important moment for us and another milestone on our way to support independent trade and increase its competitiveness. After the success of the eurocash.pl and eurocash.pl Market platforms, the time has come for an integrated system to manage the store where its heart is located, i.e. in the checkout area — says Luis Amaral, President of the Eurocash Group. — Our next project has successfully passed the testing phase, fulfills its task and is a real support for store owners all over Poland. By providing this comprehensive tool, I feel that we are effectively equalizing the opportunities and technological capabilities of independent stores with large centrally managed retail chains — adds Luis Amaral.

How does the Innovative Trading Platform work?

Innovative Trading Platform is a modern and multitasking solution based on the POS system. When implementing the solution in their store, the entrepreneur can choose the proposed modern and compact — and therefore ideally suited even for small establishments — cash register system or stay with your old device and install only software that supports IPH. The decision is up to the entrepreneur. Currently, the platform is used by more than 780 owners of ABC stores, 470 Groszek stores and nearly 150 Euro Sklep. 420 of them decided to join the platform with the exchange of cash registers for the original IPH POS cash register system.

One of the most important functionalities of IPH is the ability to independently implement promotions by store owners. It is entrepreneurs, knowing the preferences of their customers, who decide which of the offers of suppliers and networks to choose. It is worth adding that the integration of the system with consumer applications of the network allows the store owner to communicate directly with his local customers.

What other functionalities does IPH provide to stores? First of all, a modern store management system — it allows, among other things, to track turnover and the most important sales information of the establishment, allows categorizing products (both those with and without a barcode). The system facilitates the daily work of the store owner.

— It is worth emphasizing that thanks to IPH, every store owner can introduce any promotion in any location — even in the countryside and in small towns — says Cezary Giza, President of the Management Board of Innovative Trading Platform. — I often heard from entrepreneurs before starting cooperation with us that promotions are the domain of discounts. When I returned to them a few months after the installation of the system, it turned out that they began to sell the assortment, for which customers usually went to the discount store in the neighboring town. What's more, our checkout system allowed them to easily implement both regular price and 2+1 or multi-day promotions. Such opportunities were not given to them by cash registers dominant in Poland or other POS systems. The result of these activities is, for example, the results of Easter promotional campaigns. In stores that did not receive any promotion from the platform during this period, the increase in turnover of Christmas products compared to previous weeks was about 50%. On the other hand, in stores that introduced promotions using IPH, sales increased by about 400% — adds Darkness.

The IPH system is constantly being expanded. The stores that use it will have access to an increasingly wide range of services allowing them to respond even better to consumer expectations.

The stores that apply to the system first have the opportunity to benefit from co-financing for the replacement of the cash register system and access to the IPH for PLN 1.

More information about the Innovative Trading Platform is available on the website www.iph.com.pl and in this video.

Eurocash Group is the largest Polish company engaged in wholesale distribution of food products and marketing support for independent Polish entrepreneurs conducting retail activities. Franchise and partner networks supported by Eurocash bring together more than 16 thousand independent stores operating under brands such as abc, Groszek, Delikatesy Centrum, Lewiatan, Euro Sklep and Gama.

‍The demand for logistics workers remains high. According to the estimates of the Leviathan Confederation, employment in logistics in 2021 could remain at the level of the beginning of 2020 and even increase by 4-5 percent annually.[1] Therefore, the Eurocash Skills Academy decided to take up the challenge and attract the young generation of logisticians by organizing a “Virtual Festival of Professional Skills”. It was attended by as many as 1396 students from 40 industrial and technical schools throughout Poland. During the Festival, participants could reflect on how they would like to shape their career path and learn the secrets of working in logistics.

— Logistics is another industry after retail, which Eurocash Skills Academy wants to interest young people entering the labour market — tells Agata Wrzecionowska-Dzierba, manager of the Eurocash Academy of SkillsBoth industries are highly developing and struggle with a constant shortage of workers. When others cut jobs in times of crisis, trade and logistics recruit. The aim of our Virtual Festival was to acquaint students with the specifics of work in the area of broadly understood logistics, professions such as warehouse worker, supply chain planner, administrator, transport planner. We also train future warehouse managers and transport managers. We hope that in the future these students will join the Eurocash Group and together with us develop and support the independent trade market in the area of logistics — adds Wrzecionowska-Dzierba.

The second edition of the Festival was divided into 5 separate webinars. During them, students were able to learn:

• how to plan a career path and look for a job — 2 parts;
• how to prepare for recruitment processes and interviews;
• what are the specifics of work in the logistics industry;
• what are the trends and the future of this industry.

The webinars were conducted by trainers of the Eurocash Academy of Skills and logistics employees with many years of experience in the industry.

***

Eurocash Skills Academy for 10 years, it has continuously provided entrepreneurs with modern educational tools, substantive support and practical knowledge transmitted in an accessible and convenient way online and offline. Since the beginning of the epidemic, he has been conducting free webinars and online workshops for grocery store owners with expert advice on rapidly changing legal regulations, e.g. related to labor law or health regulations and regulations related to health and safety in the grocery store. In 2020, more than 23 thousand people took part in the webinars of the Eurocash Skills Academy. In 2020, more than 60 thousand e-learning courses were carried out on the educational platform of the Eurocash Academy of Skills

[1] http://konfederacjalewiatan.pl/aktualnosci/2020/1/prognozy_221_bezrobocie_troche_wzrosnie

Eurocash Group is the largest Polish company engaged in wholesale distribution of food products and marketing support for independent Polish entrepreneurs conducting retail activities. Franchise and partner networks supported by Eurocash bring together more than 16 thousand independent stores operating under brands such as abc, Groszek, Delikatesy Centrum, Lewiatan, Euro Sklep and Gama.

‍In the latest report of the Responsible Business Forum (FOB), there are as many as 17 CSR practices of the Eurocash Group. Of these, 8 are so-called “long-term practices” and as many as 9 are “new practices”, most of which are activities of the Group related to counteracting the COVID-19 epidemic addressed to employees and customers of the company — owners of local stores throughout Poland. The CSR practices of the Eurocash Group can be found in FOB reports for five years.

The Responsible Business Forum — the largest CSR organization in Poland — has published the 19th edition of the annual report “Responsible Business in Poland 2020. Good Practices”.

The report “Responsible Business in Poland” has been published regularly since 2002, and its aim is to promote the idea of responsible business. This year's edition shows the activities of Polish companies in the first year of the COVID-19 epidemic

The long-term good practices of the Eurocash Group mentioned in the FOB report are:

• Eurocash Skills Academy,
• abc on wheels — concept of mobile stores,
• Scholarship Program of the Eurocash Group Foundation,
• project Promotion of the profession of seller — led by AUE,
• Ranking Equals in Business,
• Heroes of Entrepreneurship,
• The Green Fleet,
• Green office.

Among the new practices, the following activities are highlighted in the publication:

• implementation programs for newly hired workers in trade — run by AUE,
• 5 Good initiatives for abc's fifth birthday on wheels,
• Shopping for Seniors 60+
• action #FantastyczniLudzie,
• Heroes of Everyday Action,
• Generation P - Heroes At The Start
• Run your business responsibly — an educational program for Entrepreneurs, run by AUE and the Marketing Department of the Group,
• support package for Entrepreneurs in connection with the COVID epidemic,
• #NaszeZdrowie in an era of epidemics.

The number of Eurocash Group practices included in the FOB report increased by 8 compared to last year. A detailed description of each of them can be found in the Group's non-financial report for 2020.

The Eurocash Group regularly reports on its CSR activities, broken down into the pillars set out in the “Sustainability Strategy of the 2020+ Group”, and their main focus remains the development of entrepreneurship and the support of independent retailers. This attitude and commitment of the Group is appreciated by its customers — in one survey of their satisfaction NPS, as many as 81% of them admitted that Eurocash conducts its business responsibly.

Non-financial report of the Eurocash Group for the year 2020:

https://grupaeurocash.pl/o-eurocash/odpowiedzialny-biznes.

FOB Report:

http://odpowiedzialnybiznes.pl/publikacje/raport-2020/

Eurocash Group is the largest Polish company engaged in wholesale distribution of food products and marketing support for independent Polish entrepreneurs conducting retail activities. Franchise and partner networks supported by Eurocash bring together more than 16 thousand independent stores operating under brands such as abc, Groszek, Delikatesy Centrum, Lewiatan, Euro Sklep and Gama.