As Poslovni Dnevnik writes on the 15th of September, 2020, the arrival of Eurospin Croatia has taken the country’s bargain hunters by storm and caused quite the stir among commentators and competitors.
”We don’t know who their sources of supply are, but the retail prices of some items with which they started aggressively at the beginning with are lower than those we’re achieving in procurement,” states the comment of some Croatian retailers on the new Eurospin Croatia store.
The Italian discount store Eurospin has just opened its fourth store in Croatia, in Velika Gorica close to Zagreb, in just under one month, and according to the announcements, it should conclude this year with 20 stores with a total of 500 employees. The philosophy of “smart shopping” is justified by the dominant offer of private labels, while of the Croatian products in Eurospin Croatia’s current catalog offer of fruits and vegetables, there are only tomatoes (250 g for 6.99 kn), potatoes (5 kg for 10.99 kn) and cabbage (1.69 kn / kg).
It appears that they have already lost one Croatian supplier. The Zarja group from Kerestinec, known for its brand Rajska, has already terminated their contract with them.
”We started working with them and then realised that they work without a margin, just to go with the lowest possible prices. We gave them a normal price like everyone else, to be followed by calls from other angry customers that we give Eurospin our goods below cost,” said the Zarja Group co-owner Zvonimir Belic for Vecernji list, explaining how such things do happen elsewhere, but in agreement with retailers – and for a short time, meaning only when actions are planned.
However, Eurospin Croatia’s unilateral decision forced them to put their cooperation on hold until relations improved. Martin Evacic, head of NTL and the HUP Trade Association, also noted that Eurospin set a price alert at the beginning of its operations.
”It’s difficult to get into that, but other retail chains don’t have such sources to sell their goods at such low prices. It’s obvious that this is being done without earnings or with minimal earnings, so this can’t be maintained in the long run on the market,” he believes.
When asked about business and aggressive prices from Eurospin Croatia, Vecernji list didn’t receive an answer until the conclusion of the article.
”Eurospin Croatia will operate stably and profitably, as has been the case in recent years in Slovenia, and in our country it will occupy approximately 3-4 percent of the market. There will be more changes due to the fact that the Schwartz Group has become a market leader and its companies Lidl and Kaufland are continuing to open new outlets, and that the Polish fund Enterprise Investors (EI) acquired by Studenac has announced the further development of its acquisitions to annual turnover of about five billion kuna, covering the entire Croatian market,” claimed Munjiza.
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