COMPANY PROFILE
COOP Jednota Slovakia is a consumer cooperative consisting of 30
regional COOP Jednotas – including their members, 10 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
127,486 on 31 December 2019.
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 integrate the purchase, distribution and
selling of fruit and vegetables; to support sales of Slovak products; to extend
the functionality in logistics centres; 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 significant shareholder in COOP Euro,
a. s., OPTIMA, a. s., Nitra, DRU, a. s., Zvolen, VIC, a. s. Mojmírovce, FROP,
a. s., etc.
150 YEARS OF CONSUMER COOPERATIVES IN SLOVAKIA
For a century and a half, consumer cooperatives have existed in
Slovakia. They have survived difficult social and political times, two world
wars, the communist transition and competition from abroad. In Bratislava, on
29 October 2019, COOP Jednota celebrated the 150th anniversary of consumer
cooperatives. The celebrations were attended by senior management figures from
the regional COOP Jednotas and special guests from Slovakia and around the
world. Together we reflected on the importance and meaning of consumer
cooperatives both at home and abroad.
The first cooperatives began to appear in the nineteenth century,
founded by producers facing hard times and difficult social conditions. The
very first cooperative was founded by English weavers in the town of Rochdale
in December 1844 and it was followed three months later, in February 1845, by
the Farmers’ Association, the first credit union. That was founded by Samuel
Jurkovič in Sobotište and was the first cooperative in continental Europe.
Gradually cooperatives were set up all over the world, in food (consumer),
manufacturing, agriculture, housing, funeral, fishing and insurance.
In 1869 the first communal organisation, or consumer cooperative,
was set up to supply consumer goods – the Food Society in Revúca. It was set up
by Samuel Ormis, an evangelical minister, teacher and national thinker. His
consumer association was founded on the cooperative principles of helping one
another, solidarity and cooperation and its aim was to supply its members with
groceries and grain. To ensure poorer people could join too, membership fees
were set at five gulden.
Every member had the right to attend and vote, and even when
members were later able to purchase multiple shares they still had only one
vote each.
In 1919 the trade name Jednota first appeared, when a food
cooperative was set up in Košice bearing the name. The consumer cooperatives
coped with supply problems during the two wars and even when times were very
hard they were able to stick to their principle of belonging to and serving the
people, which still applies today. After the Second World War, regular weekly
supplies of goods were reinstated under the distribution plan. In the post-war
years, the food cooperatives continued operating.
Under socialism private traders gradually formed a retail network
of consumer cooperatives.
In 1952 the political centres determined that the consumer
cooperatives should operate in rural areas, distributing supplies from the
largest districts to the smallest villages and hamlets. In the towns
distribution was organised by state enterprise. As the resources and
technologies were modernised, the consumer cooperatives began building
self-service stores. The first was opened in Nitrianske Pravo in 1956 and, in
that same year, further stores were opened in Prievidza, Hurbanovo,
Trstená and Šamorín. In 1957, in accordance with economic
requirements and the need to rationalize management, the village consumer
cooperatives and district unions were closed down and a Jednota people’s consumer
cooperative was set up in each district.
In 1970–1989 the consumer cooperatives sold groceries, building
materials and industrial goods, and ran canteens, provided accommodation and
produced food. They had around 8,500 stores, 4,000 factory canteens and
hostels, and employed more than 50,000 people. The number of self-service shops
was expanded and they built shopping centres and large department stores. The
range and quality of goods improved, shopping times were speeded up and store
capacity was expanded, which all led to higher retail turnovers.
After the fall of the communist regime in 1989, the consumer
cooperatives continued to evolve and strengthen their position. This was no
easy task in the free market era amid strong competition.
The fact that they belonged to various organisations and national
and international bodies proved helpful in this, but their success was largely
down to the fact they started developing commercial profiles. Today they are
equal partners with competing international chains in the cities and supply
goods to the districts where no one is interested in operating owing to the low
profit margins.
The consumer cooperatives have managed to maintain their position
as grocery leader on the Slovak market in the face of tough competition. The
COOP Jednota Group is the largest Slovak grocery retailer.
Up to 70% of the goods sold in COOP Jednota stores are of Slovak
origin. The COOP Jednota Group is one of the largest employers in Slovakia,
with more than 14 thousand employees. More than 1 million people have a COOP
Jednota Shopping Card.
The basic role of a cooperative is to serve its members, look
after its workforce, earn customer loyalty and contribute to regional
development. Consumer cooperatives are a fundamental part of Slovakia’s history
and present-day life. They can also be found across the world, where they have
a positive impact on the economy and a meaningful future.
PERFORMANCE AND MARKET POSITION OF THE COOP JEDNOTA GROUP
In 2019 the COOP Jednota regional consumer retail cooperatives
engaged in business achieved a retail turnover of €1.432 billion, which is an
increase of 4.73% on 2018. Revenue from COOP Jednota retail sales was €1.202
billion, representing year-on-year growth of 5.15%.
The COOP Jednota Group logistics centres had revenue of €0.576
billion, an increase of 4.73% on 2018. Total retail and wholesale revenue for
the COOP Jednota Group was €1.778 billion in 2019, which is a rise of 5.01%
compared to 2018.
In 2019 the Slovak retail grocery market remained highly
competitive. Kačka retail chain went into administration, and most of its
stores were taken over by competitors, including some COOP Jednotas.
While the COOP Jednota Group has been able to maintain its
position as market leader in groceries, mainly through our network of stores in
villages and small towns, the Group still lacks a more visible presence in
cities such as Bratislava and Košice.
One way to achieve growth, maintain our market position and
accumulate sufficient resources to cover wage growth is to take action to
increase the profitability of the COOP Jednota Group. Without raising pay, we
will not be able to maintain and recruit qualified retail store workers, which
is essential if we are to fulfil our strategic and development plans.
The Slovak market is a small one in which all grocery retailers
are fighting to attract the same customers and retail prices are governed by
the market and competition. It is therefore essential we improve profitability
levels by focusing on operating cost efficiencies.
COOP Jednota is one of Slovakia’s leading retail chains and we do not wish to go down the path of cheap imports and low quality goods. We aim to continue being a reliable retail chain with a focus on selling Slovak products, which account for around 70% of our goods over the long term.
RETAIL CHAIN
COOP Jednota has always been close to its customers. It is one of
the largest and densest retail networks in Slovakia. It operates 2,083 stores,
with 2,069 belonging to one of three formats: Potraviny, SUPERMARKET and Tempo
SUPERMARKET.
In terms of size and product range, POTRAVINY stores reflect their target customer group in the villages and small towns. They sell mainly fresh everyday goods and private label products. This is the most common type of store. At the end of 2019, the POTRAVINY chain contained 1,518 COOP Jednota stores with a floorspace of up to 200 m2.
A more convenient shopping experience awaits COOP Jednota
customers at its 531 SUPERMARKET stores with a floorspace of 200 m2 to 1,000 m2
that are found throughout most of Slovakia. With its wide range of products and
attractive prices, the SUPERMARKET chain appeals to both ordinary and more
selective customers. These are our most popular stores and customer numbers
rise every year.
Tempo SUPERMARKET stores have a wide range of good quality and
fresh products and can satisfy even the most demanding customers. In 2019 the
COOP Jednota Group had a total of 20 Tempo SUPERMARKET stores with a floorspace
of over 1,000 m2. Customers can choose from a wide range of good quality goods
and services, and fresh products, COOP private label products, a wide range of
branded goods, the latest products launched by our suppliers and a range of
household goods.
LOGISTICS CENTRES
COOP Jednota stores are supplied from 10 logistics centres that
continue to improve each year and enhance their functionality.
MARKETING, COMPETITIONS AND CAMPAIGNS
For more than 11 years, the overarching concept in COOP marketing
has been the popular duo the Shepherd and the Shepherd Boy. They help us build
our image as Slovakia’s largest retailer of good quality, fresh and mainly
Slovak products. The duo continue to entertain both COOP Jednota customers and
ordinary viewers alike, and are considered a success by experts and the general
public.
The proof of this is our Christmas promotion, which featured in
the Top 5 YouTube Ads Leaderboard 2019. This list of most watched adverts on
YouTube is published by Google.
In 2019 our sales promotions followed on from the previous year’s
successful campaign, offering customers unique and attractive products that
either came free with their shopping or at a discount in COOP Jednota stores,
such as the Delimano loyalty programme, a Discover Slovak Castles and Myths
sticker album for children, discounted Lego, and CDs and DVDs by the popular
children’s singer Miro Jaroš.
COOP Jednota customers could also try their luck at the competitions
we run every year to make Easter and Christmas shopping more entertaining. Each
year customers can win great prizes such as cars and shopping vouchers promoted
by popular adverts, and this year more than 2.5 million entered into the prize
draws.
Another novelty in 2019 was eWheel Crazy – a regular competition
in a new guise. The main theme of the competition was sustainability, the
environment and educating the public. Customers could win hybrid vehicles,
electric bikes and ordinary bikes by taking part in an online ‘eco’ quiz, in
which they had to answer questions about the environment. This fun competition
was an opportunity to learn something new and to win a top prize. There was a
30% increase in the number of entries compared to our more traditional Wheel
Crazy held in 2018.
PROMOTING SALES OF SLOVAK AND REGIONAL PRODUCTS
COOP Jednota has long been the number one seller of Slovak products, which account for around 70% of all instore goods.
In 2019, in addition to supporting Slovak producers through
various campaigns, we also ran regional speciality campaigns for products from
selected Slovak regions like Zvolen, the Carpathians, Orava and Liptov, Spiš
and Čingov, the Tatras and Šariš, Turiec, Hriňová and Tekov and Ponitrie. An
imagebased PR campaign formed the basis of our promotion of Slovak produce and
regional foods in 2019. In typical jocular style, our main message was “We
don’t need to play the Slovak game. We’ve been supporting Slovak producers for
years and that’s why our shops stock the most Slovak products and why COOP
Jednota is the number one seller of Slovak food.”
PRIVATE LABEL
In 2019 COOP Jednota celebrated twenty years since the launch of our private label. To celebrate this occasion we wrapped 20 of our products in limited edition packaging. The products that made it into the final selection had either been part of our private label range for many years or are some of the most popular instore products.
Since we launched our private label, our product line has changed and reflects the latest trends and customer requirements regarding quality and range. At the end of 2019, customers could choose from 728 COOP products in three main categories – Good Price, Traditional Quality, Premium – and five subcategories for selected customer groups – Mum’s Delicacies, Junior, Household, Active Life and Organic.
Every year the products sold under the COOP Jednota label are
regularly tested in accredited laboratories in Slovakia and neighbouring
Austria and Czechia. This means we can proudly display the Guaranteed COOP
Quality logo on our own brand products and meet our goal to ensure customers
can have good faith in the quality products sold under the COOP Jednota brand.
CUSTOMER SERVICES
In COOP Jednota stores, our customers can choose from various
additional services at POS checkouts. Customers can use COOPkasa to pay their
bills and postal orders, top-up their phones and get cashback and
discounted shopping through the COOP Jednota loyalty scheme.
NEW TECHNOLOGIES IN COOP JEDNOTA STORES
Each year customers are becoming more demanding and want their
stores to be pleasant places with a wide range of good quality fresh produce
and the latest technologies. At COOP Jednota we have been working hard since
2013 to introduce new technologies and innovations that make shopping easy,
simplify the work of shop staff and protect the environment. In selected COOP
Jednota stores, shoppers can find electronic price tags, LED price lists in the
fruit and vegetable section, self-service checkouts and musical marketing. In
Nové Zámky they can use make use of the mobile shopping service and shop online
at COOP Jednota Žilina.
LOYALTY PROGRAMME
2019 was the 15th year in which COOP Jednota Shopping Card holders
could take advantage of the loyalty scheme benefits. Cardholders get discounts
on their purchases and save money through special offers in COOP Jednota stores
and reductions offered by our external loyalty card partners.
Each year the number of cardholders rises and reached 1,229,858 on
31 December 2019. For the year 2019, the consumer cooperatives paid out
discounts on shopping purchased by cardholders worth €7,980,976. The discounts
are paid out twice a year at Easter and Christmas and customers can purchase
additional shopping with them.
Customers can record their purchases using the COOP Jednota
digital card mobile app without having to connect to the internet and can use
it to view the latest promotional leaflets, Jednota magazine or locate a store.
They can also check the volume of purchases recorded on their loyalty card and
the discount applicable during the payout period.
JEDNOTA MAGAZINE
For 17 years now, COOP Jednota customers have been receiving the
monthly Jednota magazine as a reward for their loyalty and custom. Since it was
launched, the magazine has evolved into a trustworthy partner answering
customers’ everyday questions.
The main focus of the magazine centres around COOP Jednota’s mission to be a key grocery retailer and so each issue contains information on food, eating, shopping, health and lifestyles. The magazine brings customers information about the activities of the regional COOP Jednotas – about new stores, employees, the charitable foundation and other activities aimed at reinforcing the relationship between the customer/reader and ‘their’ retail chain. The content and visual appeal supports the main aim of the magazine, which is to present COOP Jednota as a successful Slovak retail chain with the highest share of Slovak products and as a forward-looking, trustworthy retail group.
ENVIRONMENTAL POLICY
A healthy environment and lifestyle go hand in hand with a good
healthy daily life. We should therefore be paying extra attention to
protecting the environment and being careful with resources. Protecting
the environment has been important to COOP Jednota for many years. In 2019 we
introduced a new environmental strategy “Ecologically United”.
COOP Jednota provides a free instore recycling service for used
and old lightbulbs and batteries. COOP Jednota is continuing to restrict
the sale of plastic bags and offers customers recycled bags. Instead of
plastic bags, customers can choose from paper bags or multiple-use bags such as
organic cotton ones.
To improve energy management, the COOP Jednota Group has taken a number of steps to reduce energy consumption. These range from replacing store equipment with energy saving devices to renovating buildings, including the installation of renewable energy sources.
COOP EURO – INTERNATIONAL PURCHASING ALLIANCE
COOP EURO Alliance was set up in 2000 and contains three mutually non-competitive central European retail groups: COOP Jednota Slovakia consumer cooperatives (SK), COOP Cooperative Centre (CZ) and COOP Hungary Zrt. (HU).
COOP EURO is important as it enables us to engage in a strong
trade partnership and share business know-how and an in-depth knowledge of
the common market and regional differences. It operates in three important
central European markets under its own private label COOP Premium.
This
brand offers consumers premium quality and complements the private labels of
the national members of the alliance. The products sold under this label offer
good value for money and high quality compared to premium brand names. In
2019 there were 96 products under this label.
STAFF
COOP Jednota Slovakia consumer cooperatives had a total of 68 employees as of 31 December 2019, of whom 60% were women. The number employed by the COOP Jednota system was 14,036, with women accounting for 85%. The consumer cooperatives employed a total of 12,871 employees at the end of 2019, and more than 11,000 of these were working in COOP Jednota stores. There were 1,097 employees in the logistics centres. The strategic management and development of human resources in the COOP Jednota Group follows the principle of equal opportunities.
Staff training and development is a key aspect of human resources management at all levels of COOP Jednota. In 2019 we focused primarily on developing managerial skills. The key aspects were strengthening responsibility, relationship building, creating an atmosphere of trust, developing specialistskills to foster trust and professionalism among employees. We continued to employ innovative training methods through our tried and tested credit system that have proved successful and enable greater flexibility and variation in training and foster staff motivation to learn. The provision of staff training is organised in cooperation with external and inhouse trainers – selected COOP Jednota Group employees who have built up their own teaching and expertise in retail store finance, merchandising and category management. They pass on their skills, knowledge and wealth of experience to other employees through the training sessions. In selected consumer cooperatives, we introduced an online training programme in 2019. It currently covers compulsory staff training but the plan is to extend it to other types of training as well. In 2019 we continued to implement COOP New Starts – training for new store staff – and COOP Talent – staff development for those with the ambition and potential to pursue store management positions.
In 2019 we invested more than €365,000 in staff training and development. Almost 3,500 employees undertook training modules on management and executive positions.
A variable system of perks and benefits is available to all COOP
Jednota Group employees. As separate legal entities, each COOP Jednota sets its
own benefits in relation to capacity and collective agreements. The COOP Jednota
Group system of perks and benefits is an important part of staff care.
COOP JEDNOTA GROUP CODE OF ETHICS
The code of ethics is a key document that sets out the ethical
rules and guidelines on conduct in relations between staff, officials,
bodies and organisations within and outwith the COOP Jednota Group. It
stipulates the ethical values and principles that COOP Jednota subscribes to
and is committed to upholding. By upholding the Code of Conduct, COOP
Jednota strives to improve professionalism in COOP Jednota and to boost
confidence among our customers and business partners.
COMPANY PHILANTHROPY
Since it was founded in 2001, the COOP Jednota Foundation has
subscribed to one of the key principles of cooperative business – helping
one another. The COOP Jednota Foundation doesn’t just do that using its
own resources but relies mainly on contributions from supporters who help
improve quality of life in all Slovakia’s regions. The core principles of
the Foundation’s charitable work are supporting healthcare facilities,
helping people who are ill or in need and developing local communities. Since
it was founded in 2001, the Foundation has donated almost €6.5 million in
support for these areas.
Local Community Support Programme
Our local community support programme is most visible through the
people who become involved in regional development. The COOP Jednota
Foundation has been encouraging people to take an interest in their local
area and has been raising living standards in local communities. The
project is now in its third year and participation levels have again risen on
the previous year with up to 760 projects having been put forward. COOP
Jednota customers selected 26 winning projects in the final round and the
COOP Jednota Foundation donated more than €151,000 towards these. In its
third year, the local community support programme donations increased to
€447,000. In the last three years, 77 local community support projects
have been implemented.
Healthcare and social assistance
Although sometimes it may seem that buying equipment for Slovak
hospitals and providing support for individuals represent a tiny drop in
the ocean, we believe that every contribution is important and that every
sum awarded truly helps someone. The equipment purchased under our
Healthcare and Social Assistance is used by the public and those who need
it the most. The COOP Jednota Foundation focuses on individuals as well
and funds rehabilitation and development for people with disabilities –
especially children with genetic diseases. We also provide
social assistance to the third sector organisations improving quality of
life for seriously ill children. In 2019 the COOP Jednota Foundation
donated more than €137,000 as part of its Healthcare and Social Assistance.
AWARDS WON IN 2019
Honest Trader
The Slovak Union of Bakers, Confectioners and Pasta Manufacturers
awarded COOP Jednota the Honest Trader Prize for its equitable business
approach. The award is proof that unfair practices are an alien concept at
COOP Jednota Slovakia.
Most trustworthy brand
The most trustworthy Slovak grocery retailer in 2019 was COOP
Jednota. This was the first time a retail chain had been awarded this
special prize. The winner was selected on the basis of a consumer survey.
Superbrands
COOP Jednota became a superbrand for the seventh time in a row.
This title is awarded by a special panel to strong brands that keep their
promises, are innovative and continually push ahead. Slovak Superbrands
has been awarding prizes in Slovakia for eight years now.
TOP young company
Students from various universities ranked COOP Jednota first for
the tenth time in the TOP young company 2019 in Slovakia in the Retail
Chain category.
Consumer Choice – Best novelty in 2019
In the Consumer Choice marketing programme – best novelty in 2019,
COOP Jednota Slovakia won three prizes in the dairy products category.
Customers voted for their favourite private label products – COOP Dezert
Termix, COOP Longlife Milk 3.5%, COOP Parenica.
Múza Merkúra
In the 2019 creativity-in-business competition, COOP Jednota
Slovakia won the 2018 special prize for Most Favoured Brand for its
Shepherd and Shepherd Boy advertising concept.
Hermes communicator 2019
COOP Jednota came third in the Retail Chain category for best PR
based on the results of a MEDIAN SK survey in 2019. It also came first for best
interior store design for its newly opened supermarket in Detva, which was
inspired by folk art.
Goals for 2020
• To strengthen the position of the COOP Jednota chain as
market leader in groceries and sales of Slovak groceries
• To increase COOP Jednota retail turnover and overall
performance of the COOP Jednota Group
• To ensure COOP Jednota has a competitive edge and maintains
its distinctiveness on the Slovak retail market
• To modernise and expand the COOP Jednota network by opening
new stores, renovating existing ones and using new point of sales
technologies and optimising energy use
• To continue promoting the COOP Jednota brand through
greater use of digital marketing tools and by developing CSR activities
• To continue optimisation of the range of instore goods in
line with format size, including private label range
• To synchronise the purchase, distribution and sale of fruit
and vegetables through cooperation with a single central partner
• To develop COOP Jednota Group environmental policy
activities
• To expand the functionality of the existing logistics
centres
• To improve and expand additional customer services at
point-of-sale terminals in COOP Jednota Stores
• To complete the Trade and Support programme aimed at
upgrading and improving use of the database to help business management
and to help management of operational economic activity
• To improve staff development, professionalism, motivation
and satisfaction in the COOP Jednota Group in line with human resources
aims for 2020
• To use personal marketing tools to support staff
recruitment, especially for store positions