Globus expands its business to the Russian Market

Globus expands its business to the Russian Market

Globus develops its business in Russia using comprehensive Category Management solution from JDA.

CUSTOMER PROFILE

The history of Globus began in 1828 from the opening of a grocery store in the small German town St. Wendel. Today Globus is an international hypermarket chain being managed by the fifth generation of the Bruch family. The key emphasis of Globus management is on consumer needs, product and service quality as well as high productivity.

The company’s development is multi-directional: there are 73 grocery hypermarkets, 9 electronics stores and 79 DIY hypermarkets, located in Germany, Czech Republic, Luxembourg and Russia. The total employee count in all countries exceeds 37,700 people, the total revenue in 2014 amounted to 6.89 billion euro.

Globus in Russia was opened under the name “Hyperglobus” in Scholkovo, a Moscow suburb, in 2006. Nowadays the chain consists of eleven hypermarkets and has more than 8,400 employees. Further company’s development plans include the opening of new hypermarkets in the Central federation district.

The assortment of Hyperglobus has more than 45,000 items in each hypermarket, including about 1,200 private label products. 12,000 to 20,000 people visit each Hyperglobus hypermarket every day, most of them are frequent buyers.

A key differentiator of Hyperglobus hypermarkets is the presence of departments with their own production cycle, including: meat shops, fish rows, delicatessens and bakeries. The own production assortment is wide and meets the highest quality standards.

The company is an active member of the Russian-German Chamber of Commerce. In 2011, the Russian-German Chamber of Commerce has awarded Hyperglobus the “Otto Wolff von Amerongen Award” as “The best German company, developing its business in Russia.”

OBJECTIVE

To ensure effective assortment and space management with maximum benefit from the available retail space, as well as streamline store operations and maintain corporate standards in hypermarkets.

SOFTWARE

  • JDA Planogram Generator
  • JDA Category Knowledge Base
  • JDA Web Publisher
  • JDA Space Planning
  • JDA Floor Planning

BENEFITS

  • Effective assortment and space management using a comprehensive integrated Category Management solution
  • Sufficient support of store opening process
  • Enhancing store operations
  • Maximizing efficiency of retail space usage

CHALLENGE

The right assortment at the right time in the right place and in the right quantity is the key for retailer’s success in today’s global, consumer-oriented and constantly changing market. The practical realization of this goal is not possible without the use of tools that provide the required performance. The Russian division of Globus needed a system that allows effective management of assortment and shelf layout, providing the maximum benefit from the available retail space. In addition, the new system was supposed to provide support for internal corporate merchandising standards, and also to allow the automation and standardization of work processes in hypermarkets.

SOLUTION

Initially Globus had conducted a comprehensive analysis of software which was available on the Russian market to identify a system, meeting all requirements. Besides that, the experience of Globus divisions in Germany and Czech Republic had been studied in detail. As a result of this work, it was decided to execute a phased implementation of the solution provided by Strategix, a recognized provider in area of integrated solutions supporting Category Management. Strategix was invited to perform the implementation, because they had already completed integrations at Globus in Germany and Czech Republic, thus having successfully established themselves as an experienced, qualified and reliable partner.

The initial integration at Globus consisted of a basic implementation of the main components of JDA Category Management suite and further development of automation tools.

Basic implementation.

The following components of JDA Category Management solution were deployed in the scope of basic implementation:

  • JDA Space Planning – planning and optimization tool for shelf space,
  • JDA Floor Planning – store space management tool,
  • JDA Category Knowledge Base – central database and integration platform,
  • JDA Web Publisher – publishing system and communication platform.

Simultaneously with the implementation of JDA tools, Hyperglobus has developed and implemented supporting business processes and procedures with Strategix’s assistance.

The JDA Space Planning tool allowed Hyperglobus to provide the hypermarkets with detailed, optimized and specific shelf plans (planograms), JDA Floor Planning provided an opportunity for easy and effective space planning at the macro level. Due to the link between these instruments as well as integration with Dispos, a central ERP system, developed during the project, all information necessary for users to design optimized planograms and floorplans comes automatically. Thanks to planogram and floorplan lifecycles, available in JDA Category Knowledge Base, hypermarkets promptly receive all required information about assortment and layout changes, and the history of these changes can be kept in order to analyze their effectiveness.

The JDA Web Publisher ensures automated distribution of plans created or amended at the central office. Each participant of the assortment and space planning processes receives the necessary information tailored specifically for his role. Moreover, this solution allows to transfer the feedback on the success of the implementation of plans in hypermarkets.

System development and automation.

With the opening of new stores, the need to improve the system performance arose, so that the existing staff could effectively support the further development of the chain, including the planned launch of the new format of stores. The JDA Planogram Generator was selected as an adequate tool, allowing to generate large volumes of store-specific planograms automatically, taking into account local assortment and consumer demand and existing shelf situation.

Strategix implemented JDA Planogram Generator and integrated it with the existing IT infrastructure. The extensive training and coaching was performed by Strategix in order to transfer the knowhow to Hyperglobus’ specialists in the shortest possible time.

RESULTS

As a result of the basic implementation, the first hypermarket in Russia was opened already having planograms for 60% of the food assortment. All the stores opened subsequently, were already planned in the new system. Strategix solution provided effective support for the process of assortment and space planning, not only for the “simple” assortment but also for “difficult” categories like: fruits & vegetables, textiles, promotional and seasonal zones, etc. Consequently, “Hyperglobus” was the second in the ranking of the effectiveness of the retail space among all retail chains in Russia in 2012, giving way only to Azbuka Vkusa, which is a premium assortment retailer.

After the technical implementation of JDA Planogram Generator, under the guidance of Strategix’s consultants, Hyperglobus successfully optimized a significant number of categories and generated the planograms for each store individually.

“Implementation of JDA Software Space Planning, Floor Planning and Data Manager in Hyperglobus allowed to automate the work with planograms, to establish business processes, at times increase the assortment matrix and turnover, to optimize assortment and retail space management and to plan new stores. Strategix provides us with technical and user support, helps to introduce new modules and finalize new interfaces to get more data for changing business processes” concludes Evgeniya Rastegaeva, Head of Merchandising Optimization Department, Globus.

“We are always pleased with the success of our customers in the implementation of joint projects. During the years of close cooperation with Hyperglobus we were able to implement a comprehensive approach to Category Management, supporting it with powerful tools of JDA Category Management suite, and we will strive to contribute to the further effective development of business of “Globus” says Jan Hanussek, General Manager, Strategix CFT.

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