Eurocash entering the convenience store sector in Poland
Eurocash will acquire a 51% share the “Inmedio” owned by Lagardère Services. Inmedio includes 410 press shops, located mainly in shopping centres. The Inmedio shops offer a wide FMCG assortment, from cigarettes, press and books to sweets, drinks and impulse products. Selected Inmedio locations also feature bill payment, cash transfer and courier services. Inmedio generated over PLN500 million in sales and PLN15.6 million in EBITDA in 2013.
At the same time, a newly-formed subsidiary of Eurocash – Eurocash Convenience – is entering into a franchise agreement with HDS, which allows it to use the “1minute” trademark to develop a chain of convenience stores. The product range at 1minute convenience stores includes beverages, alcohol, bakery products, confectionery, hot food to go, coffee, tea as well as newspapers, cigarettes and batteries. In addition, the 1minute stores offer pre-paid top ups, Lotto and bill payment services.
“Through the agreement with HDS Polska, Eurocash Group gains a partner that has unique experience in operating convenience chains in Poland. Because of this, operational management of the inmedio chain will continue to be handled by HDS. Eurocash, on the other hand, with its controlling stake, will work on further expanding the chain through a franchise model and on reinforcing the competitive footprint of the inmedio stores by providing an effective and comprehensive supply service,” says Jacek Owczarek, Eurocash Group’s finance director.
“The franchise agreement concerning expansion of the 1minute chain is also of significance from the viewpoint of Eurocash Group’s further growth opportunities. It will give us access to a highly recognisable brand and to system and product solutions that are tested, proven and reliable, which will help to speed up Eurocash Group’s expansion in the convenience segment. The convenience format is an efficient method for building our competitive edge over discount retailers and hypermarkets. As a wholesale partner to traditional retail, we are particularly interested in developing this type of location and in the opportunities that arise from working alongside HDS,” adds Jacek Owczarek.
Source: retailanalysis.com
