Szuper Plusz: Coop is building a new store network

– From a franchise perspective, what do you think about the business environment in which Coop has to operate in 2023?

Géza Tóth
CEO
CO-OP Hungary

– The business environment and the political climate are both really hectic, and the world around us is unpredictable. This puts Co-op Hungary’s owners and the more than 400 franchise network members in a difficult position.

– Did the pandemic and the inflation crisis influence your network building?

– Fundamentally it didn’t. The pandemic created problems, but we were able to solve these. Our franchise network building work is done locally by the network members – they acquire new partners in their own environment, and it is also them who supervise the quality of services provided by Coop stores. Some small shops had to close, but bigger ones opened instead of them.

The Szuper Plusz category creates new value in the Hungarian retail sector

– How do you support the work of franchise partners?

We supply Coop stores with products from our modern Pro-Coop logistics centres. There is a store modernisation project going on, and we provide partners with a technology manual for the best end result. Partners can use our Microsoft Azure based database, which collects retail data at product level and offers great help in serving our 1 million loyal customers – based on the available information, we can shape our communication and promotion campaigns. About two years ago we launched the Coop Klub app: customers can use this to access their loyalty card, promotions, price discounts and coupons. For more than a year, we have been testing online selling via key franchise members, in partnership with the best delivery firms.

– What is it that shoppers find in every Coop store?

– They offer more than 900 private label products to customers, under the Every Day, Good at Good Price, Premium, and Good for Me labels. We are working with a short supply chain and local supplier partners – the proportion of imported products is very low. More than 80% of the groceries in the nearly 2,300 Coop stores are Hungarian. We sell more than 300 products in promotion on a weekly basis, but there are regional and local campaigns too.

Distinct image and high-quality shopping environment

– Could you speak about Coop’s energy saving and environmental protection efforts?

–  In the spirit of sustainability, the heating and cooling systems of Coop stores are modernised, LED lighting is installed, and modern refrigerators are put in place. At the moment there are solar panels on 400 stores, but this number will increase to 500 by the end of the year. In 2017 we were the first retail chain to start collecting used cooking oil from shoppers; since last September they get a HUF 100 coupon for every litre returned, in more than 500 Coop stores.

– Would you introduce your premium store network Szuper Plusz to us?

– Szuper Plusz stores are waiting for shoppers with a bigger product selection than the average Coop store, including healthy and premium groceries. Technologically these 350-400m² premium shops meet all 21st-century requirements, relying on modern green technological solutions. Right now there are 50 Szuper Plusz stores, but we plan to open 10 more until the end of the year. (x)