We have found the answers to the challenges of the last 25 years

Recently you have received the Knight Cross of the Hungarian Order of Merit. What does this decoration mean to you?

– First and foremost great joy. It is needless to say that that this decoration doesn’t only honour my work, but also that of the people I have worked with. What made the occasion even more special is that I was decorated on Coop’s 25th birthday.

Dr. István Rédei with the Knight Cross of the Hungarian Order of Merit

Your career started earlier than that, though…

– I started working in the cooperative system in 1987. In 1999 we established Co-op Star Zrt. – there were 3 founders then and in 20 years 18 cooperatives have joined us. Our sales revenue got almost 10 times bigger and Coop’s assets are now worth nearly 6 times more.

How difficult were the last 25 years from an economic perspective?

– The last 25 years were all about facing new challenges. When Coop started in 1995 multinational retailers were conquering the country. It had taken about 10 years to strengthen the positions of the Coop retail chain and a bit later we were already in the middle of an economic recession. Our answer to this was a store modernisation programme and we were able to adapt to the new-type consumer needs. In the last 5 years we were focusing on upgrading our IT system.

Shoppers think of two things when they hear the Coop name: Hungarian products and being present in basically every town and village. How can you operate a system like this efficiently?

– It is because of our cooperative system roots that Coop stores can be found everywhere around Hungary. We have been championing the cause of Hungarian products ever since we started. This isn’t only about the profit; it also has to do with social responsibility a little, as we would like to help small and medium-sized Hungarian businesses.

We have heard that you also do things other than retail trade work in Jász-Nagykun-Szolnok County…

– Next year will be my 25th in the Jászság Managers Club – I have been president of the club since day one. We organise economic development themed conferences in the Jászság region. I also take part in the life of the Carpathian Home Club, which focuses on preserving our culture, fostering economic cooperation, strengthening traditions and national identity, in the forms of various programmes and cooperation with Hungarian businesses in neighbouring countries.

How did the Covid pandemic affect Coop?

– Panic-buying has already stopped and shoppers are now shopping less often, but more consciously. Demand has increased for certain hygiene products, but the spring lockdown entailed a drop in the sales of bakery items and soft drinks.

Has the demand increased for Hungarian products recently?

– Shoppers seem to trust Hungarian products more and this can be considered a positive Covid-effect. Demand is also on the rise for local groceries.

Coop Szuper store in Székesfehérvár has undergone refurbishment this year

How do you see the future from an economic perspective?

– Digitalisation is spreading faster due to the Covid crisis. Many retailers have started automating processes and artificial intelligence is also present in our lives. These things also mean that knowledge is eroding faster, so workers need to be retrained regularly in the future.

What is the next step you are preparing for?

– An IT renewal for Coop stores and shaping our product selection to meet consumer needs better. Another question is what kind of role we can play in online retail. I think that the Coop Group will have to take important steps in this field soon. (x)