The FINANCIAL — Supermarket Goodwill will open its new branch to Adjarans. The total sum of investments made by the company in Batumi will reach half a million USD.
“In Adjara we joined an old trading centre. We did reconstruction works to get closer to international standards and certificates. The total space of the Adjaran object is 450 square meters,” Nugzar Magularia, General Director of Hypermarket Goodwill, told The FINANCIAL.
“Our general estimation of the Adjaran region is very positive. We consider it a very perspective business project,” Magularia said.
The economical downturn did not stop the management of the company continuing to invest in its further development.
“Goodwill is implementing an aggressive policy despite the crisis and believes that its current activities will have dual results when the recession passes,” Magularia stated a year ago. Presently he states that his expectations have been proven and named the implemented projects in 2009 as the management’s successes.
“In 2009 hypermarket Goodwill implemented ISO 9001:2008 quality management system with the conception of HACCP. In a prestigious district of Tbilisi we opened a supermarket of the largest format, Goodwill-Vake. The total space of which is 2,400 sq. meters,” Magularia revealed.
The company invested 5 million GEL in the opening of Goodwill-Vake. Magularia says that the sales volume is developing with an enhancing dynamic. The management plans to see a return of the invested money in around 4-5 years.
Magularia underlines implementation of the bonus card system for its loyal customers as the most important decision. “Recent economical changes did not make us change the strategic plans of development.”
“During the six years of its existence on the Georgian market Goodwill was established as a popular brand. Constant innovations, novelties, high quality service, wide range of assortment – all these factors helped us gain customers’ trust.”
Magularia names the development of a chain network and implementation of new technologies as the main challenges for 2010. He said that the further development of the company will be supported by stable environment and improvement of our customers’ social situation.
In 2008 annual turnover of the company was 52 million USD. And in 2009 it reached more than 65 million USD.
About 60-65% of Goodwill customers were people from the middle classes. Magularia says that this tendency changed during the recession when customers started cost reduction policies. “Actually, we have not faced a reduction in the number of customers. They have just separated in to various groups purchasing different products.”
Magularia notes that Goodwill-Vake helped the company attract new customers and enlarge realization. “We consider Goodwill-Vake the competitor of Hypermarket Goodwill. “Hypermarket Goodwill and Goodwill-Vake are of different formats. Purchases in both differ from each other. Accordingly we cannot consider them actual competitors. We expect an attraction of new customers that will enlarge realization,” he explained.
The originality of hypermarket Goodwill was unique on the Georgian market and did not have any competitors at the time. The company’s strategy of increasing the chain network will not result in competition with other retailers.
After the beginning of the global recession when some local brands renting spaces at Goodwill faced difficulties the management offered them 30% discounts. “This step supported us in maintaining our customers. No brand left the hypermarket during the recession,” Magularia noted. He adds that the period of stagnation is now over in Georgia.
Magularia does not exclude increasing the company’s share in neighbouring countries.
It is the third time that hypermarket Goodwill has become recipient of the annual award Golden Brand. Magularia says that for them such awards are extremely important. “The decision was made by our customers as well as by experts and specialists. Such awards increase our responsibility towards the public and our customers. And we’ll do our best to maintain this status and even exceed it in the future.”