Why Public Group turns its attention to its dominance in retail

Despite the changes in the domestic electronics/electrical goods market that are foreseen by the sale of Kotsovolos by British Currys and the interest recently expressed by Plaisio for a possible acquisition, the Public Group seems to remain focused on the investment plan it launched last year. Based on the positive performance in 2022 and double-digit growth rates in the first months of 2023, it is focusing on its growth strategy to become the leading omnichannel force.

This year is expected to be even better for the Public, as its figures are expected to be 30% stronger than last year. Public Group had previously announced that it would pursue a new dynamic strategy, investing EUR 100 million in new generation stores, expanding the product range, and adding modern services, with the group placing particular emphasis on the digital part through new partnerships.

The growth plan

Within the framework of Public2, its new strategic vision, the group has set itself the goal of expanding its business, emphasizing Public's multi-channel strategic planning, and offering the customer more products and services. Its strategic initiatives include the integration of home appliances into the Public's portfolio, upgrading its store network, storage facilities, and logistics services, developing new assets such as the Public Next innovation hub, and investing in new services and partnerships.

Penetration of online

Recent investments and international strategic partnerships in digital and logistics scale-ups have put Public in a pioneering position in the digital environment. The synergies it has created with Klarna, Revolut, Box Now, Douleutaras, and Bookvoice.gr are upgrading the omnichannel customer experience, resulting in online penetration exceeding 25% of its total turnover. Public Group's goal is for the percentage of online sales to reach 50% in the coming years.

In fact, in the first months of 2023, Public's digital sales are growing at a high double-digit rate, at the same time as the new Public Marketplace's revenues have doubled, in an online market that remains stable post-pandemic. This dynamic development is the result of a series of initiatives such as the upgrade of the eCommerce technology platform, the introduction of new product categories in the new Public Marketplace that respond to the desires and needs of consumers, the innovative eCommerce payments & delivery services that give flexibility and convenience to customers, and the EUR 30 million investment to create the first scale up ecosystem.

The innovation

The vehicle for these moves is Public Capital Partners, the group's investment arm in the innovation sector. The investment vehicle started with EUR 20 million of capital, which it has exhausted and is expected to tap new capital for new investments in the near future.

Among the investments it made, the one in SVUUM stood out, aiming to develop the most customer-centric and innovative "Hand to Hand Delivery" in Greece. As well as the lockers follow a partnership with Emma Capital -known from OPAP-, with a placement in Box Now, as part of its recent investments in the last mile, while the arm's placements also include that in the multinational electronic transaction company Buy-Now-Pay-Later, Klarna, which was recently launched in physical stores in addition to the e-shop.

The innovative services that have already been implemented include the fast repair of smartphones, laptops, and tablets through iRepair, next-day delivery from the logistics center throughout mainland Greece, the installation of home appliances through the Douleutaras.gr platform, as well as Audiobooks, through the Bookvoice.gr platform, and the exclusive launch of the popular Revolut Pay with significant acceptance by dynamic user communities.

The New Generation stores

In addition to the digital channel, Public Group is focusing on upgrading the physical stores as part of the final phase for the complete absorption of the MediaMarkt brand under the Public brand. In this context, work is being carried out to upgrade 13 MediaMarkt mega stores into New Generation ones, with an investment of EUR 10 million. The company has already made an investment of EUR 1 million to upgrade the two stores on Syngrou Avenue and in Maroussi into "New Generation" stores.

The household appliances

Following this, the total network offering home appliances and all related services will reach 30 stores in autumn 2023. Essentially half of the stores will offer home appliances, as the network will have a total of 61 stores in Greece and Cyprus. Within a year of investing in this model, Public Group is constantly increasing its share in home appliances which even reaches 20% of sales.