With only 20 years under the belt, the prettily-named Linella is a new kid on the Moldovan retail block. The supermarket chain, part of the Dragan Group and fully operational with Moldovan capital, owns about 150 stores, 60 of them in the capital of Chisinau and the rest scattered throughout the country. "Our core business is affordable but quality fresh produce," begins commercial director Maria Movileanu.
Enter any of their stores, and you are greeted by the fruit and vegetable department. "We always try to have a wide selection, with standard products supplemented by seasonal items and specialties. Besides the dry goods aisles, all our stores have a refrigerated fruit and vegetable area. These don't have any premium brands; everything is high-quality. To distinguish products of the same kind, you need pre-packing, which we don't do yet. It's considered a limitation, but we may change that in the future. Neither do we target high-end consumers. Our average shopper comes from the middle class; they take home good products without having to pay extra for a name. It's similar to [the German hypermarket chain] Kaufland's philosophy."
Commercial director Maria Movileanu
Improved process
That is no coincidence. Before Maria joined the Linella team in 2019, she had worked in several multinational companies in Romania; for the last 14 years for Kaufland. "Three years ago, I wanted to put the expertise I'd gained at those multinationals and [Western] European companies to use at a purely Moldovan company. Methodology-wise, retail in Western Europe is much further along than in Moldova. I wanted to take on the challenge of improving that process. And that's working out quite well. In recent years, Linella isn't only making financial efficiency strides but is also doing more and more regarding customer loyalty. The focus used to be on cheap products; now, our offer is both affordable and high quality. That's the image we want to project," she explains.
To guarantee their fruit and vegetables' quality, this retailer prefers, wherever possible, buying from local growers and doing direct imports over working with distributors. "Until a few years ago, the purchasing team's members' portfolios each included several suppliers. Now, each member is responsible for a particular product group. I'm convinced that when working with products rather than suppliers, quality receives more attention. We have a four-person fruit and vegetable team."
Photo: Imoon
No compromises regarding quality
"We source apples, plums, and grapes locally. Less than five percent of those items in our stores are imported. Still, depending on the volumes available and price in Moldova, we sometimes get a few Goldens from Poland or grapes from Spain and Italy. Our citrus comes mainly from Turkey, but Spain, Morocco, and South Africa occasionally participate. We regularly get lemons from Argentina. For the important vegetables, we set our sights primarily on Turkey. They offer us the best price, and by now, know what we want," Maria continues.
Over the years, Linella's requirements have become increasingly strict. "If we get a load of produce that doesn't meet our quality standard, we promptly return it. We don't compromise. We won't begin price negotiations and then sell that product anyway. Our approach is paying off because the number of rejected shipments has noticeably declined. Occasionally we run the risk of running out of a certain fruit or vegetable at a certain time, but we take that risk. We have to educate our suppliers so they don't dare load Class II products. Our rejection rate isn't yet as low as Kaufland's, but we're well on our way."
Bananas from Ecuador, easy peelers, and Hass avocados
As in most countries, bananas are the most popular fruit in Moldova. "We have good connections with suppliers from Ecuador. The bananas are ripened here in Moldova and reach [Western] Europe through the port of Constanza or Belgium and the Netherlands. Constanza is much closer, but customs clearance in the Benelux is much faster, container rates are cheaper, and arrival times are more accurate. Moldovan apples and grapes, naturally, do very well on Linella's shelves, as do mandarins in the European season, especially the higher-end easy peelers. Moldova isn't a rich country, but it's willing to pay for quality," says Movileanu.
This little Southeastern European country's citrus consumption is much higher than its large neighbor, Romania. "Besides oranges, Spanish persimmon and pomelo are surprisingly popular. Avocado consumption, too, is rising sharply, and its sales at Linella have almost doubled; we offer perfectly ripened Hass avocados. I once heard someone say, at a barbecue, that Linella has the best avocados in town."
Photo Linella
Wide cabbage range
As for vegetables, Maria singles out asparagus and Chinese cabbage's unusually good performance. "We always have broccoli, but cauliflower is seasonal. Moldovans like Brussels sprouts too. We have several lettuce varieties, and pre-packaged spinach and arugula also sell well. We get flow-packed fresh herbs like parsley from Iran and Uzbekistan," Maria says.
"In the winter, specialty consumption will decline in line with purchasing power. But I think middle-class shoppers will visit hypermarkets - where they often make impulse buys - less and increasingly choose neighborhood supermarkets like Linella. After all, we offer quality products at reasonable prices for all your basic needs. We must ensure that people have no reason to go to another store."
Yet, Linella offers consumers new products from time to time. "Big introductions aren't for us, but we like putting new items on the shelf in a few carefully selected stores. What catches on then lays claim to wider use throughout the country - if the quantities allow. We also give locally-grown specialties a chance, which by definition, don't reach large volumes. Mini cherry or yellow tomatoes are nice products, but demand is too limited for large-scale distribution," explains Maria.
First steps toward home deliveries
There are three already well-established trends in the Western European retail world: Ready-to-eat products, organic, and online sales. Linella is, however, holding off a bit on these. "We have sandwiches, meal salads, and even a few full meals in our refrigerator, but they represent a minuscule share of the total sales. Organic is still a true niche segment in Moldova, and we've only rolled out online sales in the capital."
"Demand isn't that high yet, so our team can only handle so many orders per hour. Still, I'm surprised that people also order meat, vegetables, and fruits for home delivery. Apparently, they trust our quality. However, I think physical stores will always generate the largest turnover because most people still want to see, feel or smell a product. Plus, shopping is an experience which is completely lost with online sales," Maria concludes.
Besides its 150 stores, ranging from 200 to 1,500m2 in size - with an average of 500m2 in Moldova's capital and 800m2 in the country's rural areas - Linella also operates ten Fidesco proximity stores. They acquired this chain two years ago, keeping the store name. Linella stores are open seven days a week. Outside the capital, Linella branches are often the region's main store. The chain has only one distribution center in Chisinau, and its capital sales strategy is drawn up centrally, meaning the various stores are not run as franchises.
For more information:
Maria Movileanu (Commercial Director)
Linella
121 Muncesti Street
2002, Chisinau, Moldova
Tel: +373 228 90 930
Mob: +373 760 00 500
Email: maria.movileanu@dragangroup.com
Website: www.linella.md