Interview with Almarin Lico, jumbo CEO of Caucasus, Ukraine, Kazakhstan and Uzbekistan

Kid Zaone Jumbo is the company of the BALFIN Group that operates under the Jumbo brand under the contract on exclusiveness with Jumbo S.A. (Greece).

1. BALFIN Group and Jumbo S.A. They’ve been partners since 2011. What has moved Jumbo to believe BALFIN’s expansion into six new markets and full management of the supply chain?

The partnership between the BALFIN Group and jumbo has been ongoingly developed and strengthened since 2011. Through Kid Zaone jumbo, the group company that operates brand exclusive, today we have a network of 30 stores in four markets. Over the past 15 years, we have built a brand recognition, its business model, operating standards and factors that allow for sustainable growth in various markets.

New agreement signed by Mr. Samir Mane, founder and president of the BALFIN Group, and Mr. Apostolos-Evangelos Vacakis, founder of Jumbo, is evidence of the faith built over the years and of the results we have achieved together.

The taking on enlargement in six other countries, along with full responsibility for the supply chain, represents a natural step in developing this partnership. This decision values our achievements so far and creates the opportunity to further extend a business model that has proved its success over the years.

2. Kid Zaone jumbo and the BALFIN Group will take on a much broader role in managing the supply chain, from providing products to distributing them. Do you have the capacity needed to handle this responsibility?

Yeah. Jumbo and the BALFIN Group already have a consolidated experience in managing retail operations in some countries, which constitutes a solid basis for taking on greater responsibilities in the supply chain.

To support this expansion, we are investing in the establishment of dedicated teams, the development of technological systems and the creation of necessary logistical structures, co-operating simultaneously with experienced international partners. This will enable us to manage the whole process more efficiently and co-ordinatedly, from providing products and organizing supplies to distribution in the respective markets.

We will gradually build this platform, in line with the pace of entering each new market. Our approach aims to develop operational capacities in parallel with expanding activity, ensuring a sustainable and long-term growth.

3. The deal gives Kid Zone Yembo exclusive right to operate brand Jumbo in Armenia, Azerbaijan, Georgia, Kazakhstan, Ukraine and Uzbekistan. What makes these markets attractive, and what potential do you see in them?

This agreement marks an important difference in the model of co-operation and operation between the two partners. In the markets where we are currently present, inventory management and logistical processes are based mainly on jumbo structures in Greece. While, under the new agreement, the BALFIN Group will take over the independent management of the entire supply chain for new territories, ranging from providing products in China, to storage, transport and distribution to the final destination.

All six countries together make up a strategic space with considerable development potential, which lies in Caucasus, Ukraine and Central Asia. For Jumbo, this means access to a vast and promising region.

These markets have several common characteristics that make them especially attractive: significant populations, retail sectors that are being modernised and a growing demand for quality, functional and affordable products. These are very favourable conditions for a brand like Jumbo, which has built a strong position in the market just through a varied offer and a good ratio between quality and price.

We see great long-term potential in this expansion. The first step will be to enter Georgia’s market to follow through gradually with other countries. We will pursue a well-planned strategy, adapting the pace of enlargement to the development of our infrastructure and local operations.

4. A major logistical centre in China will be at the foundation of the new model of the Kid Zone Zoem supply chain. What will this group structure do differently?

Jumbo and the BALFIN Group will build an integrated logistics network, which will cover all the links in the supply chain. At the heart of this model will be a major logistics facility in China, linked to the storage and distribution infrastructure that will take place in areas where we will operate.

Center in China will serve to collect and consolidate products from the jumbo supplier network before they are transported to our regional distribution centers.

This organization will give us a much clearer control and mirror over the entire supply chain. We could better plan remittances, optimise transport of goods, and implement the same operational processes in all markets.

At the same time, this centre will contribute to standardisation of processes and strengthening operational control, creating an integrated supply platform, with capacity to expand over and over again.

This will be especially important as our activity extends to all six markets, bringing increased volume and greater operational complexity.

5. How does this agreement strengthen the position of the BALFIN Group as a group with regional and international capacities in the retail sector and in managing the supply chain?

The BALFIN group has a decades-long experience in developing activities in various markets, as well as managing a wide variety of businesses and international brands. The new agreement rests precisely on this experience and significantly expands our size and operational responsibilities.

By this model, BALFIN will Integratedly manage all aspects of activity development: entering new markets, developing real estate, technological infrastructure, establishing local organisational structures, retail operations and an international supply chain that will serve several countries simultaneously.

What makes this agreement especially important is the very combination of all these functions into a single, coordinated model of operation. We will not simply manage the expansion of a network of stores, but the entire platform that enables their functioning and development.

This agreement further consolidates BALFIN’s position as an international group experienced in the retail sector and strengthens our ability to conduct complex operations in several markets simultaneously.

6. As the BALFIN Group expands into new markets, what opportunities are created for workers who aim to develop an international career?

This expansion creates new opportunities for international career development in a wide range of areas, including retail, logistics, technology, finance and asset management.

With the opening of new markets, our employees will be able to get directly involved in the operating processes, take responsibility at regional level, and work in different business countries and environments.

Such experience contributes not only to the development of professional expertise but also to strengthening management, co-operation and intercultural communication skills.

For the BALFIN Group, international enlargement is simultaneously an opportunity to identify and develop talents within the organisation. Our goal is to enable employees to build a long – term career within the group, gaining experience in markets, teams, and cultures.