10 YEARS AFTER 2004 EU ENLARGEMENT

THE BENEFITS & IMPACT OF MODERN RETAILBrussels, 18 March 2014

Renata Juszkiewicz, Vice-President EuroCommerce President POHiD

President CEE Commerce Council

BENEFITS & IMPACT OF MODERN RETAIL SINCE 2004

Shopping in the 90’s

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Shopping in the 90’s

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Shopping in the 90’s

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SHOPPING TODAY

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SHOPPING TODAY

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SHOPPING TODAY

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BENEFITS & IMPACT OF MODERN RETAIL

• Major impact on transformation process in CEE region

• Modernisation of the retail sector made CEE region attractive to investors

• Stimulating consumption and production creating breakthrough in local food processing industries

• Contributing to growth in other sectors and stimulating export market

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CONTRIBUTION MODERN RETAILTO ECONOMIES

• Foreign investment €100 billion

• Annual sales €62 billion

• Jobs created 400,000

• New stores 8,000

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TAKE A LOOK BACK (1)

• State-owned retail companies & weak competition

• Limited food product ranges & quantity

• Poor customer service

• Mono- and small store formats

• Outdated technologies

• Low food quality & safety standard

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TAKE A LOOK BACK (2)

• Large unsaturated domestic markets

• Association agreements with EU

• Supportive new regulations

• Improving infrastructure

• Strong human capital base

• Lack of know how & capital resources

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MODERN RETAIL CHANGING CONSUMER’S EXPERIENCES

• Affordable and low prices due to strong competition

• Widening consumer choice, offering promotions, sales and innovation

• Higher quality and standards

• Reflection of changing life styles and respective nutrition demands: high quality food; convenience food; healthier diet etc.

• Different modern commerce formats: discounters, supermarkets, hypermarkets etc.

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INTRODUCTION CONSUMER RIGHTS BY MODERN RETAIL

• Consumer empowerment

• Guarantees and warrantees

• Ability to return products

• Redress & customer service and technical departments

• Food safety & sustainability

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OPPORTUNITIES CEE REGION

• 15 % productivity gap

• Export to Western Europe

• Private label products modern retail

• Support dialogue with modern retail to increase business friendly environment

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INCREASE BUSINESS FRIENDLY ENVIRONMENT

• Create a level playing field for all retail formats

• Increase legal certainty for businesses

• Invest in local cooperation and production

• Correct implementation and enforcement of EU law

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Thank you for your attention