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Informal Alliance to Attack Konzum

It cannot be a coincidence that three major retail chains, Billa, Diona, and Lidl, are somehow simultaneously getting new leadership.

While it may be somewhat exaggerated to say that an alliance is being formed to attack Konzum, we can certainly expect that the competition in the retail market for consumer goods will significantly intensify this year.

At the end of October, the Rewe Group appointed Mohamed Bouyaala as the head of Billa in Croatia, who also retained his position as Chief Operating Officer at Rewe International, under which Billa, Bipa, Merkur, and Penny operate. It is already evident that Billa in Croatia has gained a leader who will break the routine into which the company has slowly fallen in recent years. To start, Bouyaala announced the opening of several new stores in downtown Zagreb.

The Gavrilović family, owners of Diona, have brought Roko Vodopija to lead that chain at the beginning of this year. Although they have only briefly stated that his task will be to transform the company, Vodopija’s background speaks volumes about what is expected of him. He came to Diona from Bitola, where he spent four years restructuring the leading Macedonian dairy industry. Although Diona has had revenue growth far above the industry average in the past six years under the management of Slavica Maros Stipančić, it seems that the Gavrilović family has much bigger plans for her. The trend of customers returning to neighborhood stores certainly gives Diona a boost.

As of March 1, 37-year-old Boris Lukšić, currently a member of the Management Board for Sales, will take over as CEO of Lidl Croatia, as the current CEO Marin Dokozić is moving to the position of CEO of Lidl in Portugal. This change, however, does not represent any shift in Lidl’s development plans in Croatia; rather, it confirms that Lidl will continue its expansive growth.

Recently, Bouyaala, Vodopija, and Lukšić received a ‘glove to the face’ from Konzum in the form of a project in which Todorić’s company is investing over one hundred million kuna. This is the ‘Lowest Prices in the Neighborhood’ project, under which Konzum has reduced prices for 300 basic daily items across all its formats.

The response of the informal alliance to this challenge from Konzum is likely not to be long in coming.