Fozzy Group's consolidated turnover in 2019 increased by 18.2% and amounted to UAH 78.163 billion (excluding VAT). The company continues to show high growth rates. Over the past 5 years, its turnover has increased 2.44 times.
Moreover, Fozzy Group paid record amounts of taxes and fees in 2019: UAH 3.85 billion, which is 32.8% more than the previous year. Particularly, the Silpo network (Silpo-Food LLC) became second largest taxpayer in Ukraine among food retailers, according to the State Fiscal Service.
By the end of 2019, Fozzy Group owned 695 outlets, 553 of which being food stores, with a total area of approximately 1.2 million square meters.
During 2019, 71 new stores were opened in the networks that are part of the Fozzy Group, i.e. 23 styled Silpo supermarkets, 17 Fora convenience stores, 3 Thrash! discount stores, 12 cell phone stores, and 16 drug stores “Bila Romashka”. Ukrainian pub “Mokri Vusa” joined the restaurant front of Fozzy Group.
Designs And New Conceptual Areas
The Silpo network continued its development in creation of themed supermarkets. In addition to 23 new stores, 5 more stores were renovated and acquired their own unique design. The network has supermarkets styled after Mexico, Jamaica, Gogol, Buddha, jazz, rock music, The Wizard of Oz, and even the Silk Road. The Silpo team also drew inspiration fr om Van Gogh's paintings, the aeronautics history, Asian culture, etc. Currently, Silpo is one of the few large grocery retailers in the world that creates an individual themed design for each store.
In November 2019, Silpo opened the largest themed supermarket with an area of 5,766.2 square meters in BlockBuster Mall, the largest shopping mall in Kyiv. The store is styled after an animated film “Mavka. The Forest Song” as a result of creative collaboration with a Ukrainian studio Animagrad (FILM.UA Group). This is the network’s most modern supermarket with a special concept: there is a full-fledged food hall with fish and meat establishments, a pizzeria with a wood-burning oven for cooking traditional Neapolitan pizza, a jiao bar with Eastern Chinese dishes, and a sushi area. Here, you can also treat yourself with classic Italian pastries, gourmet and classic burgers.
In 2019, another food hall as a gastronomic space of specialized establishments in some supermarkets, supervised by brand chef Marco Cervetti, was opened in a new yacht-club-styled Silpo store at River Mall. There were also new conceptual establishments operating within supermarkets: the French cafe Le P’tit Bistrot (Dnipro) and the Neapolitan pizzeria Pizza Saloon (Stoianka village).
In 2019, Fora opened two largest stores with an updated design with an expanded assortment and a cafe in Vyshneve (990 sq.m.) and Lisnyky village (1,315 sq.m.). A cafe within a supermarket is a new conceptual area in the network that appeared in six stores during the year. Fora continued to develop the direction of ‘fast pizza’ cooked in the trading floor. At the end of 2019, pizza could be ordered in 108 stores, 27 of which opened during the year.
Additionally, Fora increased the number of “drive-in” coffee areas, wh ere customers can make coffee by themselves or with the help of a barista. By the end of the year, this service was available in 221 supermarkets, 101 of which opened in 2019.
Digitalization and Digital Transformation
In 2019, Fozzy Group actively developed innovative projects in the realm of digital transformation and digitalization.
Mobile Apps
The number of unique users of the Silpo mobile app reached almost 900,000. In February 2020, the number of unique users went over 1 million.
Fora launched its own mobile app in August 2019. In addition to tracking promotions, collecting bonuses and receiving personal offers, this app, similar to the Silpo app, allows customers to make QR payments with just one scan by adding payment cards to a Masterpass wallet even if it does not have a PayPass feature.
Self-Service Registers
In Silpo supermarkets, the number of self-service registers called “samokasy” continued to grow. By the end of 2019, 54 supermarkets were equipped with 347 self-service registers. On average, 27% of checks were paid through self-service registers. In 2019, the record number of payments via Silpo’s “samokasy” was 47.3% of checks per month in Kharkiv at 167/1 Gagarin Ave.
Fora also undertook to develop its self-service registers. By the end of 2019, 11 Fora stores were equipped with 52 self-service registers.
The mobile apps and software for self-service registers were developed in collaboration with the IT company TemaBIT that is part of Fozzy Group.
Online Shopping and Click&Collect
In 2019, the chain of wholesale hypermarkets Fozzy Cash & Carry expanded its online shopping and pickup service called Fozzy Drive (Click&Collect) in Kyiv, Kharkiv, Dnipro, and Odesa. It also worked on developing a delivery service and enlarging its delivery area. In 2019, the online store fozzyshop.ua launched the payment service using a Privatbank card with a LiqPay feature.
“Lavka Tradytsii”
The project for support and development of local food entrepreneurs and small business “Lavka Tradytsii” has grown to 142 participants that supply the Silpo network with over 2,500 items of craft produce. At the end of 2019, “Lavka Tradytsii” sections were opened in 98 supermarkets; 32 sections operated as shop-in-shop within Silpo supermarkets. The year saw three local food festivals True&Local (in Kyiv, Odesa, Dnipro, and Lviv), 1,500 food tastings titled “Producers’ Treats” in supermarkets, and Agromandry food tours.
In 2019, Silpo launched an educational project Foodprosvita that provides an opportunity to do test sales in the network. 173 students graduated the course, six of whom became participants of “Lavka Tradytsii” after graduation. The course also has a grant fund: the first students awarded a grant were a Somalian family producing sauces. With the UN support, they launched their own business in the Odesa region.
Environmental Projects
In 2019, Silpo opened five new sorting stations, therefore, currently there are eight #Silporecycling stations in major cities of Ukraine (Kyiv, Kharkiv, Dnipro, Lviv, Odesa, and Zaporizhzhia). More than 300 tons of recyclables were sent for recycling and customers visited #Silporecycling stations 55,000 times in 2019. During the year, Silpo also implemented energy-saving projects: replacement of fluorescent lamps with LEDs, replacement of outdoor lighting with energy-efficient lamps, installation of heat recovery units and lids for refrigeration equipment, etc. Fora also implemented environmental projects: refrigerators’ recuperation aimed at heating of facilities and water, installation of a thermal curtain with intelligent control that helps to use electricity more efficiently, energy-saving freezers, replacement of fluorescent lamps with LEDs, etc.
Own Imports and International Achievements
The Own Imports Project has increased the number of foreign direct suppliers to 930 manufacturers from 85 countries. Its products can be purchased in Fozzy Group’s networks: Silpo, Fora, and Fozzy Cash&Carry. Own Imports is one of the largest importers of wine, cheese, delicatessen, and fish in Ukraine. In 2019, over 23,000 tons of fish and seafood were imported. Imports of olive oil have almost doubled to 460,000 liters and 124 items, including 30 items from the Flos Olei rating, as well as hundreds of new types of tea, sweets, and beer.
In 2019, the Group achieved three victories for Ukraine in the international arena:
— Three Silpo designer supermarkets were listen in Europe’s Finest Store 2019, top 25 best innovative designs in European stores according to European Supermarket Magazine.
— Marco Cervetti, the brand chef for Silpo restaurant projects, received The Best Chef Award according to the international rating of olive oils Flos Olei. In addition, Flos Olei named Kyiv establishments Positano and Le Grill as The Restaurant of 2020 (The Restaurant of the Year).
— Positano was listed as one of the best pizzerias in Europe. The establishment took the 30th place in the annual guide 50 Top Pizza and became the first (and so far the only) establishment to represent Ukraine in the European ranking. Marco Cervetti created the menu for this restaurant together with the world-famous pizza chef Enzo Coccia, the founder of the pizzeria La Notizia, recommended by the Michelin guide.
Fozzy Group is one of the largest trade and industrial groups in Ukraine. Its retail front of about 700 stores across the country is represented by such supermarket networks as Silpo, Le Silpo delicatessens, Fozzy wholesale hypermarkets, Fora convenience stores, and Thrash! discounters, while non-food direction is represented by pharmaceutical supermarkets, “Bila Romashka” drug stores, and ringoo personal electronics shops. The Group is also involved in food production, banking, restaurant business, and logistics, and owns a delivery operator Justin. In total, Fozzy Group provides jobs to more than 55,000 people.
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