Zoran Mitreski: Konzum Leads in the Retail Network of Fortenova Group

The components of the retail chain of the Fortenova Group in all five countries of the region last year, particularly in the first half of the year, marked by reactions to almost extraordinary business circumstances due to inflationary pressures, once again proved to be a support to their customers, partners, and employees, as well as to national governments, as all our companies supported the measures of the governments of the region to limit product prices to help citizens cope with rising costs. Despite such circumstances, we implemented a whole series of important projects in the network, one of which is the strategic project of its expansion and consolidation. Thus, with the acquisition of the Franca market, the network in Montenegro increased by 67 sales locations, and we opened about 50 new and renovated sales locations in the regional network of our stores.

Konzum in Croatia led this effort, expanding its network with 16 new and eight renovated sales locations, investing 25 million euros in the process. Organic growth, as well as growth through acquisitions, remain one of the development levers of our business strategy in the upcoming period, where we will make all future decisions related to the expansion of the retail network with consideration of the synergistic potential of contributions to the entire network. Likewise, our focus remains on further growth of business indicators and further strengthening the efficiency of the regional chain, which is currently the largest domestic retail network in five countries of the region. One of the growth levers is also the continuation of the strategy of close and good cooperation with domestic producers and distributors, as it has already been shown that this is an important prerequisite for our rapid adaptation to external circumstances. In this way, we have preserved our competitiveness while also offering customers fresh and local products.

We will continue to improve the material status and working conditions of our employees. Likewise, we will continue to expand the application of AI solutions, as the digitalization projects being implemented in our retail operations have enabled companies to remain leaders in the field of innovation.

At the Group level, a whole series of ESG initiatives are continuously being implemented by activities and individual companies. A major project is the development of plans to reduce carbon footprint and the energy efficiency project that has been implemented in each retail company, coordinated at the level of the entire network. Within this framework, solar panels are being installed on stores, LED lighting is being introduced, refrigeration showcases are being optimized, etc.

Konzum leads in the implementation within the retail network of the Fortenova Group. The company achieved double-digit revenue growth last year compared to 2022, a record year, and is also a leader in a whole series of trends – from initiatives that improve sustainability in the supply chain to advances in digital business, such as Konzum SMART store or cryptocurrency payments. For the sixth consecutive year, Konzum has been recognized as the largest food donor in Croatia, and research we continuously conduct shows that our customers recognize and appreciate our pricing initiatives, quality offerings, especially when it comes to “the best from Croatia”, domestic and fresh, as well as our care for the community in which we operate.

We are extremely proud that we, as the largest company of the Fortenova Group in Croatia with about 11,000 employees, are one of the leading employers in the country and that our practices have been recognized by the profession: this year we renewed the Employer Partner Certificate, with even better results, and we were awarded, along with about twenty other companies from the entire Fortenova Group, the Best Places to Work certificate. After investing in employee salary increases twice last year, totaling 45 million euros annually, the bar has been set high, and we are directing our efforts to meet our people’s expectations.