Real-izing branding

Real waited until after the holidays to initiate rebranding in all 19 stores acquired in its takeover of Géant last year.

The firm encountered a series of challenges in adapting Géant's existing IT and logistics systems. Therefore, the company implemented a program to streamline these processes. On the corporate level, Real eliminated Géant's HQ, and, in an effort to improve logistics, it replaced the central distribution center in Stryków with a direct distribution system and also improved its new markets' receiving departments. Finally, the product line was revamped and an integrated assortment of 120,000 of the most popular products offered by both supermarkets was created. Fresh areas like produce and baked goods were expanded. Real also introduced its own generic brand and points-based loyalty program.

Martin Ender, managing director of Real Polska, says it was indispensable for the company to recognize Géant's customer and "analyze the existing product line so as not to disappoint consumers accustomed to buying certain products. Our aim is to invest in building our customer base and match their expectations - profits will come later."

The most expensive part of the zł.12-million operation was the installment of display and logo fixtures, which Real managed to accomplish without closing down any markets. Martin Ender also claimed that Real had taken care to find new jobs - both inside and outside the company - for employees who had been made redundant.

With its network of 49 stores across Poland, Real expects a 2.2-percent increase in sales revenues this year while it continues to open markets in major cities like Wrocław and smaller cities like Łomża in the coming years. Real also plans to reduce the area of many markets by 2,000-6,000 sqm, at a cost of up to E2 (zł.7.8) million, to match the industry's growing trend for smaller markets.