The successful journey of Kotsovolos

New products, services and investments in logistics on the agenda

Last year, Yannis Vasilakos, Vice President and CEO of Kotsovolos, the leading electrical and electronics retailer in Greece, was talking about the positive progress the company had made during 2020/2021. In a year of constant operational challenges, the results of Kotsovolos for that financial year recorded a positive result, which was achieved with the physical stores, which in the past had accounted for 90% of sales.

A year later, the chain has another success, maintaining its upward trajectory despite the enormous inflation pressure on consumers and the retail market: a turnover of €700 million -compared to last year's €654 million- and a satisfactory profitability.

By the numbers

In the first half of the financial year ended May 1, Kotsovolos reported a 5% increase in sales compared to last year, reaching 340 million euros, according to the financial results by Currys group, formerly Dixons Carphone plc, the British multinational electrical and telecommunications retailer and services company. In the same period, EBITDA was down to €1.15 million from €12.65 million in the same period last year, which the British group said it was attributed to market disruption caused by the tough discounting policy of the competition.

Sales growth

The rise in sales in the full financial year, which has just ended, is partially linked to the government subsidy programmes that have been running throughout this period, such as the "Recycle-Assemble Appliance" scheme, which led to a significant wave of purchases in the second half of the year.

In addition to that, was the demand from horeca sector, which accounts for 75% of the revenue on B2B sales made by Kotsovolos. It should be noted that the latter reaches a proportion of 20% of total turnover.

New products and services

And all these, due to the various services that Kotsovolos offers to its customers. Moreover, the chain's main objective is to gradually increase more than today's 15,000 codes, reaching up to 35,000 in the long term. Already in the Agia Paraskevi store and at eshop kotsovolos.gr, interior furniture is available. The new investment plan even provides for the development of new products and services "Logistics As a Service", ensuring high quality results and strengthening the after sales services offered.

In order to offer its overall range of services, Kotsovolos aims to open new stores in areas where it does not operate yet, but also to strengthen local markets and major urban centres by opening new stores or rennovating the old ones. All, combining technology with modern services, comfortable sales areas and a range of benefits for all customers, such as mobile phone repair in one day.

At the heart of the new stores, there are specially designed corners for special moments of experience, gaming products, and devices for "Smart Home", combined with the wider range of electronics and small appliances. Specially stocked experience areas also give the possibility to consumers to try out the device they want.

Investing in logistics

The funded digital transformation investment project launched at the beginning of the year, enabled Kotsovolos to implement the creation of a new 56,000 sqm warehouse, distribution and repair centre on a 120-acre site in Thriasio Field. A fully automated warehouse and transportation system will be implemented there, utilizing specialized software, information and communication technology infrastructure and robotics to optimize the management, storage and retrieval of items/goods from the warehouse in the supply chain industry.

The pandemic reality demanded a violent transformation of the Kotsovolos business model. The alternative of internet and call center channels managed a huge volume of transactions, while the company was able to efficiently manage a huge volume of orders and understand in practice that the next day requires a phygital philosophy. Kotsovolos continues to invest in digital transformation and e-commerce, despite the fact that in the past year the chain's online sales declined at 10%-11% levels, as consumers have now returned to physical stores.