Minimart is a Bulgarian retail chain of convenient grocery stores that started in March 2023 with its first location in Sofia. Behind the projects stands the "BGC" AD company, which has invested in the ambitious plan to open a significant number of stores across the country in a record short time. Just nine months after its launch, the chain already operates over 40 grocery stores in Sofia and Plovdiv.
Minimart's plans for 2024 include expanding with an additional 110 stores, stepping into other cities across the country, and by December, having 150 operating stores in Sofia, Plovdiv, Pazardzhik, Pernik, Stara Zagora, Asenovgrad, and Burgas. The long-term expansion aims to make the chain national, with a presence throughout the country.
The concept of Minimart is unique for the Bulgarian market, combining the characteristics of managing small stores and large retail chains. The company's successful formula includes precise selection of locations, speed in opening and developing stores, and a highly motivating Partner Management model for store operation.
Minimart's model is for people who are passionate about retail, value each customer, and have an individual approach to them. That's why Minimart stores are the "heart of the neighborhood."
We are talking to Angel Petkaneshkov, Financial Director and Member of the Board of Directors of "BGC" AD, responsible for the Finance, IT, Logistics, and Administration departments. With over 20 years of experience in the retail and pharmaceutical industries. He started back in 2003 as one of the first employees of "Praktiker" - the German chain of DIY hypermarkets. Over the years, he has been involved in numerous restructuring, optimization, and development projects of the organizations for growth. Before embarking on the Minimart project, he was the Financial Director of "Maxima Bulgaria".
Mr. Petkaneshkov, Minimart launched less than a year ago, in the spring of 2023, with the ambition to become the largest chain of convenience stores for groceries in a very short time. Has this concept proven itself on the market? What achievements and goals have you accomplished during this period?
We are satisfied with the journey we've had so far because in less than a year, we managed to develop a chain "from scratch" using our own model and at a scale that on our market is typically achieved only after several years of work. We ended the year 2023 with 40 woрking stores, 30 of which are in Sofia and 10 in Plovdiv. It's particularly important for us that we've learned to improve various processes within the company and accelerate the pace of expansion. For instance, out of these initial 40 stores, we opened 10 in just one month in December. Operating in the two largest cities – Sofia and Plovdiv – was also a challenge we managed to overcome, and we are proud of. These are the markets with the most demanding customers, and we're pleased that they have received us well.
We're also satisfied with how we dealt with the challenges of developing internal processes. Rapid expansion like Minimart's is only possible if processes are managed by a flexible and adaptive IT system. Therefore, we had to build infrastructure for connectivity between stores, set up an ERP system and cash software, establish a direct link with the bank to achieve one of the fastest card payments on the market with a single receipt. Simultaneously, integration with an external Logistics Center had to be established. Upon commencing operations, we also implemented a BI (Business Intelligence) system based on real data from the ERP system, allowing for quick informed management decisions. Recognition of the success of our work is the nomination for an award from the Bulgarian Association of Information Technologies (BAIT) in the competition for 2023 in the category "Successful ICT Project for the Benefit of the Bulgarian Economy" for the project of implementing a comprehensive IT solution in a modern retail startup.
What does your business strategy include for the development of the retail chain this year? Will you manage to open over 80 stores in Sofia and Plovdiv, as well as in the largest cities in the country, as previously announced? What new innovations will attract more customers?
Our strategy for 2024 focuses on the concept of stores with sales areas ranging from 50 to 130 sq.m., located in busy commercial areas, near public transport stops, both in central urban areas and predominantly residential locations. The speed in selecting suitable premises and turning them into Minimart stores is crucial. We plan to expand with another 110 stores, stepping into other cities across the country, and by December, have 150 working stores in Sofia, Plovdiv, Pazardzhik, Pernik, Stara Zagora, Asenovgrad, and Burgas. In long term, the expansion is planned to become national, with presence throughout the country. We plan to improve and diversify our product range to meet our customers' expectations to the fullest. We aim to establish ourselves as the preferred chain of convenience stores for active individuals with dynamic daily routines, valuing their time, seeking convenience, proximity to the office, school, and home, carefully selected quality products, and above all, warm personal service. We will expand the offered assortment typical for a neighborhood grocery store – dairy products, sausages, bakery goods, beverages, staple foods, sweets, alcohol, cigarettes, personal hygiene products, pet foods, and more. But we will emphasize on what we've established as our trademark – the crispy warm hotdog prepared on the spot and aromatic coffee. We plan to expand our deli section portfolio with new recipes and flavors, as well as entirely new offerings of tasty dishes, snacks, and beverages in convenient packaging, ready for immediate consumption at home or the office, satisfying our customers' preferences for every moment of the day – morning, noon, and evening. We're also considering offering additional services in our stores.
What competitive advantages did the partnership and financing from DSK Bank provide to Minimart?
We are pleased that a large and established financial partner like DSK Bank recognized the potential in our project and evaluated us as an interesting, innovative, and promising business. Starting our operations with the support of one of the largest banks on the market gave us confidence that we would create a retail chain that would set the quality standard in modern trade on the market. The fact that we are financed by a partner like DSK Bank is evidence of high standards and prospects in front of our business partners. Besides the purely financial aspect, DSK Bank provided us with significant support in implementing technical solutions for fast payments in our chain. Together with the team at DSK Bank, we managed to build a system for fast card payments, one of the best solutions on the market at the moment, and our customers feel the effect through the comfort of being served quickly at the checkout in any Minimart store.
