Growing competition

Detal Koncept, the Lublin-based company that introduced the Groszek grocery stores, has launched another chain under the name of  Milea. It is intended as a franchise network of compact supermarkets  in towns with a population of over 2,500.

"The idea is to promote local goods and enable cooperation with local companies, such as bakeries," explained Dariusz Bożek, CEO of Detal Koncept. Detal Koncept is part of Emperia Holding, which also includes Euro Sklepy and some regional Lewiatan trade networks, among others.

"We opened our first Milea test store in June 2007, followed by four more. In May 2008 we were delighted to open the first Milea franchise in Jabłoń, Lubelskie voivodship," Bożek said.

Currently there are 38 Milea stores in six voivodships and just one Milea franchise, but Detal Koncept plans to expand with franchises in 14 voivodships this year alone.

Asked about direct competition for Milea stores, Bożek named Centrum supermarkets run by the  Eurocash network, which is also part of Emperia Holding.

According to Detal Koncept representatives, Milea will not be a competition for Groszek stores.

"In fact we hope that owners of Groszek franchises will be interested in opening Milea stores as well," said Bożek. "Grocery franchises are the most popular franchises in Poland for investors," said Arkadiusz Słodkowski of the Polish Franchise Organization and a director at Profit System, a franchise consultancy.

"It is far easier for a local entrepreneur to open a franchise supermarket with a brand name, a history and a reputation," he explained.