Mercator is to step up its focus on core activities and customer satisfaction, the retailer's supervisory board confirmed yesterday, 17 June. In an extraordinary board session following the announcement of Agrokor's acquisition of 53% of the Slovenian retailer, Mercator's supervisory board confirmed the additional marketing and cost management measures that were proposed by the management board.
According to Mercator, the Group will 'respond to the harsh market conditions with intensified marketing activities and cost management'. The planned marketing measures will include category management initiatives and an attempt to boost customer satisfaction in-store. Mercator will continue with ongoing sales promotions activities and customer loyalty programs 'will be stepped up'.
Additional cost savings are expected to be made in materials, services, electrical energy and labour costs. 'Savings regarding the latter will result especially from the reorganization and transfer of activities of the companies Modiana, Intersport and Mercator's local companies', the Group said in a press release.
According to the press release, Toni Balaži?, president of Mercator's management board, asserted that the signing of the agreement between the consortium of sellers and Agrokor will bring 'long-term stabilization of ownership structure, which Mercator needs'.
There is also to be greater emphasis on fresh categories and local produce in Mercator stores, with the retailer to continue dedicating around 70% of shelf space to Slovenian products. More than 100 Slovenian suppliers currently supply produce to Mercator. Commenting on the policy to source products locally, the Group asserted, 'Mercator is a Slovenian retailer whose competitiveness also relies on competitive suppliers'. (18 June)
© 2013 - ESM: European Supermarket Magazine by Ellen Lunney
