COOP Jednota Slovakia is a consumer cooperative consisting of 30 regional COOP Jednotas –including their members, 9 logistics centres and the COOP Jednota Foundation. Each regional COOP Jednota has its own membership base. The total number of ordinary members of the COOP Jednota group was 170,219 on 31 December 2014. The main mission of COOP Jednota Slovakia is to ensure the social and economic prosperity of the cooperative and its members, namely by creating tools and adopting measures so that its members, the individual COOP Jednotas, can maintain their share of the market. In addition, COOP Jednota Slovakia protects the rights and interests of the members of the cooperative, representing them and promoting their interests within organs and institutions both in the Slovak Republic and abroad. The fundamental strategic goals of COOP Jednota Slovakia and the COOP Jednota group are: to bring common procedures together under one roof and ensure uniformity for all members; to complete the logistics system; to integrate the purchase, distribution and selling of fruit and vegetables; to support sales of Slovak products; to synchronise information systems; to strengthen corporate identity in both the immediate and external environments. The most highly recognised value within the COOP Jednota group as a whole is customer satisfaction, which we aim to achieve by having creative and happy employees and by having good relations with trade partners as well. COOP Jednota Slovakia is a signifi cant shareholder in COOP Euro, a. s., OPTIMA, a. s., Nitra, DRU, a. s., Zvolen, VIC, a. s. Mojmírovce, FROP, a. s., etc.
Performance and market position of COOP Jednota Group
The consumer cooperatives trading in Slovakia as part of the COOP Jednota Group had a retail turnover totalling €1,226.4 million in 2014 – an increase of 1.2% on 2013.
The fi gure for COOP Jednota Group logistics centres was €492 million, which is a year-on-year increase of 5.6%. The total performance of all the COOP Jednotas, including the logistics centres, was €1,718.3 million – an increase of 2.4% on 2013. Food defl ation in 2014 had an impact on COOP Jednota Group trade and results. Although in terms of volume COOP Jednota stores sold more goods, the growth in revenue was minimal. The COOP Jednota Group was able to maintain and consolidate its position as leader on the Slovak groceries market owing to the results it has achieved over a number of years. This is undoubtedly due in part to the fact that it is able to draw on the reputation it has built up: COOP Jednota is closest to its customers and knows them very well since they shop at COOP Jednota every day.
Supporting Slovak products and the Slovak economy at COOP Jednota
Supporting domestic producers, their quality products, and therefore also the Slovak economy rank amongst COOP Jednota Group priorities. The proportion of Slovak groceries on sale in COOP Jednota stores ranges from 68% to 74% depending on the region. In order to maximise the visibility of Slovak products on the market and make them more competitive, COOP Jednota Slovakia entered into an agreement with the Slovak Ministry of Agriculture and Rural Development at the end of 2014 which authorises COOP Jednota Slovakia to use the “Slovak Mark of Quality” in promoting eligible products. So far more than 600 Slovak products from 85 quality Slovak food producers carry this prestigious mark. COOP Jednota will also be able to use the golden SK Gold Mark of Quality, which 45 producers are already proudly using. Throughout 2015 COOP Jednota Slovakia will regularly promote both logos, and the products carrying them, in its leafl ets and its magazine Jednota.
With 2,206 stores, the COOP Jednota Group is the largest retail chain on the Slovak market. Its stores are divided into three diff erent retail categories: POTRAVINY, SUPERMARKET and Tempo SUPERMARKET. The POTRAVINY chain is the most numerous with a total of 1,793 stores. Stores of up to 200 m² belong to this category. In these stores shoppers have the convenience of shopping within a smaller fl oor space.
POTRAVINY stores are mainly found in rural areas and in smaller urban districts. They provide customers with fresh everyday shopping essentials, have a quick turnover of products, and stock goods from the popular COOP Jednota private label. At the end of 2014 the SUPERMARKET chain had 394 stores of 200 m² to 1,000 m² in size. SUPERMARKET
stores provide customers with a wide range of grocery products including COOP Jednota private label products and branded goods, non-groceries and toiletries. In SUPERMARKET stores the emphasis is on providing a wide range of quality fresh goods. At over 1000 m² in size Tempo SUPERMARKET stores are the largest in the COOP Jednota retail chain. The
Tempo SUPERMARKET chain aims to provide a wide range of fresh goods, COOP Jednota private label goods, and a wide range of branded goods as well. The focus in this type of store is on freshness, quality and display. We also try to provide services of the highest quality and to respond fl exibly to customer requirements
The main goal of the logistics chain is to maintain a coordinated approach to logistics.
The year 2014 saw enhancements to the logistics system and existing logistics centres were modernised to make them full-range logistics centres. As at 31 December 2014 there were 9 logistics centres. COOP Jednota Group logistics centres had a turnover of €492 million in 2014 and their year-on-year performance grew by 5.6%.
Marketing, PR, competitions and campaigns
Best Domestic Groceries – this is the corporate slogan that informed all COOP Jednota PR in 2014, and it refl ects and consolidates the years spent building up the image of the COOP Jednota Group as the largest domestic chain with fresh, quality, aff ordable Slovak groceries. This message and this image are promoted by the ever popular fi gures “Bača a honelník” [The Shepherd and the Shepherd Boy], whose funny sketches and stories address
the customer through various selected media. The media mix was carefully selected to appeal to a wide COOP Jednota target audience. The campaigns conducted in 2014 can be divided into three categories – consumer competitions, product campaigns and image campaigns. Various PR tools were used in these promotions. A fi rmly established aspect of COOP Jed nota Slovakia’s PR is the use of on-line PR tools. The great use of the
internet and social networks and the spread and popularity of smart phones and the other new mobile Technologies which have now become part of our everyday lives have brought new means and methods of communicating with customers. COOP Jednota is also tapping into this trend and in 2014 we prepared many online activities for our customers.
2014 can be considered another successful year for our private label. Our private label goods are now unquestionably an integral part of the range we off er to our customers. 2014 marked fi ﬅeen years since products bearing the COOP Jednota label fi rst began to appear on COOP Jednota shelves. The fi rst product to appear was long-life milk in 1999 and since then the COOP Jednota private label has undergone major changes in all areas – the number of products, the categories of products and label design. At the end of 2014 there were three basic private label categories Dobrá cena [Good Price], Tradičná kvalita
[Traditional Quality] and Premium, containing 737 products in total. The Tradičná kvalita category contains sub-brands – groups of products targeted at specifi c consumers, for example, Mamičkine dobroty [Mum’s Delicacies], Junior, Active life, Domácnosť [Household], Bio [Organic]. The retail turnover share of private label products increased by 19% in 2014.
In 2014 COOP Jednota Slovakia carried out a total of 1,853 quality control inspections on its products.This fi gure shows that we care greatly that the quality of COOP Jednota label products is guaranteed and maintained.
Global success of COOP Jednota’ s Kremžská horčica [Kremser Mustard]
In May 2014 more than 210 products from 16 countries competed in 30 categories for the prestigious PLMA International Salute to Excellence Awards. COOP Jednota is the only company from central and eastern Europe thus far that can be proud of its private label products that not only taste delicious, but are excellently priced, attractively packaged and the winner of an international award. Kremžská horčica Mamičkine dobroty [Mum’s Delicacies Kremser Mustard] came fi rst in its category. It therefore competed well against the largest international retail chains.
In 2014 COOP Jednota stores continued to extend their additional services. We recorded a large increase, of around 20%, in MasterCard and Visa payments and also in mobile phone top ups and the use of Coopkasa and CashBack. There was also a rise in the number of contactless payments in larger stores.
New technologies in COOP Jednota stores
The COOP Jednota Group has become a pioneer in introducing new in-store technologies. In 2013 it was the fi rst retail chain to begin installing electronic price-tagging, initially in two Tempo SUPERMARKET stores. In 2014 this was extended into two additional Tempo SUPER MARKET stores. By the end of 2014 a total of six COOP Jednota stores had electronic price-tagging and installation will continue in 2015.
LED TV price-listing
In addition to electronic price-tagging in COOP Jednota stores, 2014 saw us introduce another technological novelty – the introduction of LED TV price-listings in the fruit and vegetable section. 42” monitors display customer information about the fruit and vegetables on off er. Staff can alter price tags all over the store from one central point thereby improving the quality of service for the customer and freeing up staff so they can concentrate on
replenishment and ensuring that a quality range of fruit and vegetables is provided.
Loyal customers are the best form of advertising there is and so the COOP Jednota Group does all it can to ensure that customers have plenty of reasons to keep coming back to COOP Jednota stores and use their COOP Jednota Shopping Card at the same time. In 2014 the COOP card celebrated its 10th birthday. COOP Jednota began issuing its fi rst national loyalty card in 2004, when there were 255,460 cardholders. Ten years later, in August 2014 to be precise, we issued our millionth card, which goes to show that that the COOP card remains very popular amongst customers. On 31 December 2014 there were 1,023,383 COOP Jednota Slovakia loyalty cards, which is an increase of 69,527 cards on 2013. Shopping bought using the loyalty card accounted for over 56.9% of total retail turnover in 2014 and this represented a year-on-year increase of 1.25%. COOP Jednotas off er their customers discounts on their shopping of between 1% and 2%, depending on the policy of the COOP Jednota, and customers can claim their discount once the full calendar year is up and within a specific period. The consumer cooperatives gave back more than €7,914,290 to cardholding customers who had used their COOP Jednota card when shopping, which is an increase of €206,136 on the previous year. In 2014 cardholders could use their cards to take advantage of fi nancial benefi ts in the form of various discounts
off ered by COOP Jednota Slovakia’s contractual partners: Tatratour Slovakia travel agency, TIP travel, CK Bubo, Trenčianske Teplice Spa, Piešťany and Smrdáky Spas, and Tempo Kondela Furniture and Aquacity Poprad.
The consumer cooperatives have a long publishing tradition and Jednota magazine builds on the 41 years of Družstevné noviny [Cooperative News] and 43 years of Družstevný obzor [Cooperative Horizons]. In the twelve years that Jednota has been published it has become a customer-oriented publication seeking to promote the mission of COOP Jednota Slovakia and strengthen relations between the customer and the retail chain. The magazine falls into the light-reading category and covers a wide range of themes centring on groceries, a healthy lifestyle, and the role COOP Jednota Slovakia plays in this context. It is also a means of promoting COOP Jednota, providing information on what is new, COOP events, and marketing and charitable activities. Jednota is a popular monthly magazine in Slovakia. It is distributed to all COOP Jednota stores and a complimentary copy is available to all shoppers.
COOP Jednota Slovakia works with Envi-Pak, a.s. in meeting its recycling targets and is authorised to use the Green Dot symbol. Every year Envi-Pak notifi es the Ministry of the Environment of the Slovak Republic about packaging and achieving compulsory waste packaging recovery and recycling targets. Regional COOP Jednotas also help protect the environment by investing in new technologies and energy-saving equipment for their stores, particularly chill and freezer equipment, reducing emissions and keeping refrigerator
emissions to a low. In COOP Jednota stores customers can pack their shopping into oxo-biodegradable shopping bags, paper bags and long-life jute bags, and thereby help protect the environment. By introducing electronic price-tagging in its stores COOP Jednota reduces the use of printer paper and toner, which are categorised as dangerous waste. Equally
by introducing a new LED based lighting system COOP Jednota helps save natural energy resources.
As at 31 December 2014, COOP Jednota Slovakia consumer cooperative had a total of 82 employees, 53% of whom were women. As at 31 December 2014, the total number of employees at COOP Jednota was 14,037, of whom around 85% were women. Of the 13,018 regional consumer cooperative staff members, 10,986 worked in the branches in 2014. The
COOP Jednota Group logistics centres employed 937 staff members in total as at 31 December 2014. Our human resources strategy of training and developing staff members at all management levels within COOP Jednota is one of our key areas. Staff training and development aims are set so as to boost the quality of sales and services provided to the end customer, the eff ectiveness of management processes, and proactive and eff ective internal communication. In 2014 €270,000 was invested in staff training and development. More than 1,900 staff members employed in managerial and executive positions undertook training modules.
Code of conduct
The code of conduct sets out the various rules and guidelines on staff conduct and on internal and external relations between the various functionaries, bodies and individual consumer cooperatives within the COOP Jednota Group. The code of conduct refl ects the ethical values COOP Jednota has signed up to and is committed to upholding. It is through these values that COOP Jednota achieves greater added value in the professional conduct of work and thereby fosters trust in customers who shop at COOP Jednota stores.
The COOP Jednota Foundation was set up in 2001. Its main purpose is to support humanitarian goals, healthcare, sport and education, and support and develop education, culture and art, and social assistance as well as helping the sick and those with disabilities. The fi nancial resources that the foundation acquires from various sources are
allocated in accordance with the rules and decisions of the foundation‘s Board of Directors.
Over its 13 years the foundation has supported hospitals, socially vulnerable families, families with sick children and families aff ected by natural catastrophes, as well as various projects, to a total of almost €3.2 million. This money was used to purchase 122 items of medical equipment worth €869,000 for Slovak hospitals. Humanitarian aid of almost €370,000 was provided to people aff ected by natural disasters (earthquakes and fl oods) and families with seriously ill children. As part of the “Don’t leave them hanging around” project, we have approved 229 projects out of 2,232 applications in the last 10 years and provided funding totalling €395,000. The “Jednota for School Kids” project has received more than €1.5 million since it began. In 2014 the foundation provided funding of €112,425 in humanitarian aid for healthcare. The 12th year of the “Jednota for School Kids” project incurred costs of €178,200. In 2014 the “Don’t leave them hanging around” project was
run for the 10th year running and as part of it 29 projects were awarded funding totalling €40,928. As in previous years, in 2014 COOP Jednota Slovakia actively engaged in public life by providing real assistance and participating in a number of fund-raising activities, special events, exhibitions, conferences and benefi t concerts.
Awards gained and COOP Jednota victories in 2014
Traditional quality and an unquestionably high level of services led to COOP Jednota winning fi ve prestigious competitions in 2014.
Superbrands 2014- the Slovak Superbrands panel of experts and Slovak consumers awarded the Superbrands award to the COOP Jednota brand for the second time. Having won the award in 2013 the COOP Jednota brand won the Superbrands award again in 2014.
Múza Merkúra- COOP Jednota Slovakia came 2nd in the fourth year of the creativity in business competition in the TOP brand in business award for its project “Autumn campaign for Mamičkine dobroty [Mum’s Delicacies] brand in 2013”.
PLMA International Salute to Excellence Awards- competing against more than 210 products from 16 countries in 30 categories, COOP Jednota won 1st place in its category with its Kremžská horčica Mamičkine dobroty [Mum’s Delicacies Kremser Mustard]. COOP Jednota Slovakia is the only company from a central and eastern European country that can take pride in having won this prize.
HERMES Communicator of 2014– 3rd place in the “Retail chain” category of the “HERMES Communicator of 2014 Grand Prix for the best communicating company in Slovakia”.
TOP company for young people in 2014 in Slovakia– 1st place in the “Retail chain – grocery products”. COOP Jednota was awarded this prize by Junior Chamber Interna tional–Slovakia for the sixth time.
Goals for 2015
• To make the services and range on off er at COOP Jednota
stores more appealing to customers
• To strengthen our position as the largest grocery retailer in Slovakia
• To ensure growth in retail turnover at the various COOP Jednotas and growth in the performance of the COOP Jednota Group as a whole
• To improve our lead in selling Slovak products by increasing the amount available in COOP Jednota stores
• To continue opening new COOP Jednota stores and modernising existing stores whilst making eff ective use of new information technologies
• To optimise the range of goods available in-store in keeping with store size and by using our own data control
• To increase sales support in Tempo SUPERMARKETS and SUPERMARKETS by expanding publication of advertising supplements
• To make the COOP Jednota Group loyalty programme more attractive and begin paying out COOP Jednota Shopping Card discounts twice a year
• To expand the functionality of existing logistics centres
• To ensure that COOP Jednota Group staff are trained in line with our established goals and projects, and improve staff motivation and satisfaction