GENERAL MANAGER OF MİGROS TİCARET A.Ş., ÖZGÜR TORT: "MİGROS ACHIEVED THE GOLDEN RATIO IN RETAILING. OUR SYSTEM DOES NOT CHURN OUT FOR NOUGHT. WE ACHIEVE HEALTHY GROWTH IN DOUBLE DIGITS."
19 April 2013
ONCE AGAIN HAVING SET ITS END-OF-YEAR TARGET AT DOUBLE DIGIT GROWTH TO SURPASS A TURNOVER OF TRY 7 BILLION, MİGROS GROUP WILL INCREASE ITS STORE COUNT ABOVE 1000, AND WILL PROVIDE FOR 1% OF TURKEY'S EMPLOYMENT TARGETS FOR THE NEXT 3 YEARS
GENERAL MANAGER OF MİGROS TİCARET A.Ş., ÖZGÜR TORT:
"MİGROS ACHIEVED THE GOLDEN RATIO IN RETAILING. OUR SYSTEM DOES NOT CHURN OUT FOR NOUGHT. WE ACHIEVE HEALTHY GROWTH IN DOUBLE DIGITS."
The leading player in Turkish retailing sector, Migros Group announced the results for year 2012, as well as the targets for 2013. Migros Ticaret A.Ş. General Manager Özgür Tort stated that the core of business at Migros, which prepares to celebrate its 60th year, is to achieve "healthy growth". Noting that Migros achieved the 'Golden Ratio' in retailing through growth, productivity, penetration, and provision of a distinct shopping experience, Özgür Tort announced that the inherent structure of Migros gave its fruits, bringing a fourth generation of customers. Özgür Tort said "We plan to grow double digits in year 2013 as well. We consider each sale throughout the year as the cement or mortar for the investments regarding the next year. Our system does not churn out for nought. In the end, both Migros, the consumers, and the Turkish economy wins."
The leading player of Turkish retailing industry, Migros Group held a press conference in Istanbul to announce the financial results for year 2012, and to disclose the targets for year 2013. In the conference, Migros Ticaret A.Ş. General Manager Özgür Tort stated that they achieved a turnover of TRY 6.5 billion in line with their targets for year 2012, and that the turnover targets for the end of year 2013 was set above TRY 7 billion through double digit growth once again. Noting that they were able to replace Şok's turnover in merely two years, Tort announced the objective of exceeding 1000 stores as of the end of 2013. Tort asserted that they would contribute to the target set for Turkish retailing sector for year 2023 at around 400-500 billion dollars, through the experience Migros accumulated over 60 years.
Özgür Tort: "We achieved the golden ratio in retailing. This equilibrium is a summary of our perspective applied through 60 years."
Noting that Migros stood out thanks to four characteristics which made it more valuable, Özgür Tort elaborated "As is the case with architecture and arts, retailing is also dependent on mathematics. Mathematics provides a framework to connect all discerning characteristics. As retailers, we enjoy an equilibrium which is also tightly interconnected, which becomes unstable when one of the elements is missing. In these early days of its 60th year, Migros achieved this 'Golden Ratio in Retailing'. The crucial element here is the quest for equilibrium. We achieved the golden ratio in retailing. This equilibrium is a summary of our perspective applied through 60 years. Declaring that the elements of 'Golden Ratio' at Migros are 'growth', 'productivity', 'penetration', and 'providing a distinct shopping experience', Özgür Tort said "These elements are brought together and feed each other in an equilibrium, by retailers which are the household names in retailing business worldwide. This equilibrium summarizes the strength, sustainable growth, and the timeless retailing perspective of the Migros brand."
"The crux of the business is achieving healthy growth"
Reminding that Migros Ticaret A.Ş. had, throughout its retailing history of 60 years, always implemented a growth oriented strategy, Özgür Tort noted that the crux of the business is achieving healthy growth. Tort said "This is a systematical strategy of growth planned in utmost detail, to provide for healthy growth for years to come. The growth should neither be slow, nor faster than necessary. It should be at a level just right. Each flower needs water. However, give it excessive amounts, or less than what it needs, first its growth would stop, and then it would die. It is possible to open 10 stores, or 1000 for that matter, in a given year. But the crucial matter is to contribute to the plans for the future, through such developments and investments. Healthy growth should be reflected in long-term figures, and should be sustainable. The allocation of resources to serve sustainable growth is critical for the firm, as well as the country, let alone one which is in the fast lane of development, such as Turkey. We don't have the luxury to squander resources. Migros reviews healthy growth through 60 years, in the eyes of the consumers and the employees, as well as all stakeholders."
Noting that the healthy growth in Migros is equal to investments in new stores, which translate into more accessible goods and services for the consumers, leading to growth in the trade volumes, Özgür Tort stated "We grew by double digits in year 2012. And we set our sights at double digit growth for year 2013 as well. We channel the value we create to investments in stores. In 2013, we will open 3 new stores each week, surpassing the figure of 1000 stores focused on the supermarket perspective. In Kazakhstan, we achieved a turnover of approximately 200 million dollars, bringing us the market leadership through tripling our size in the last 6 years."
"The sales of this year is the cement or mortar for the next year's investments"
Stating that the second element of golden ratio in retailing is productivity, Tort noted that the leading retailers of the world achieved an average profitability of 5.7% in terms of EBITDA. Migros, in this vein, improved its productivity rates, achieving an EBITDA of 6.6% in year 2012. Arguing that "this is a crucial indicator of healthy and effective growth", Tort added "our system does not churn out for nought. Time always flows. The sales of this year is the cement or mortar for the next year's investments. In line with our strategy focused on productivity, each year we allocate the cement and mortar of the next year's investments within our healthy growth strategy. In the end, both Migros, the consumers, and the Turkish economy wins. This is the ideal in retailing, leading to a sustainable path of growth. We, in turn, abide by these targets."
"Migros will account for 1 percent of Turkey's employment targets set for providing employment to 1.6 million in 3 years"
Arguing that the one of the obvious results of the healthy growth and productivity oriented strategy is 'the contribution to employment', Özgür Tort noted that Migros Group would provide for 1 percent of Turkey's declared target of employment for 1.6 million within 3 years: "In 2013, we will expand the Migros staff roster by 3,000 from its current level of 18,500. The ensuing two years will see the growth of the number of Migros employees by 50 percent compared to the previous year. This will allow us to make a substantial contribution in achieving the employment targets set for Turkey."
"Migros' structure reflects that of Turkey. We now achieved access to the fourth generation. Our access to the youth grew by 18 percent"
Stating that penetration was yet another critical element in achieving the golden ratio in retailing, Tort said "We achieved a penetration rate of 60% of all households in Turkey. We are now closer to the demands of our customers from all budget and income groups through Migros, Tansaş, Macrocenter, 5M Migros and MigrosJet stores." Pointing out that the structure of Migros reflects that of Turkey, Tort declared that its market share grew by 1.8% compared to the preceding year. Reminding that Migros prepares to celebrate its 60th year in the business, and generations change in retailing once every 20 years, Tort said "There is a substantial base which grew with Migros. However, one of our priorities is to always keep up with the youngest generation. The customer loyalty is created in early ages, and it constitutes the source of tomorrow. Each generation brings its share of magnet products. Thanks to our will to manage change, we already have a grasp of the fourth generation, and we enter to our new age along with this generation." Tort noted "We achieved an increase in the access to the youth population at a rate of 18 percent. In another words, one can say that Migros now has a fresh offshoot."
"It's spring time here"
Noting that the fourth element of the golden ratio is the distinct shopping experience, Tort asserted that providing a distinct shopping experience to the customers is one of the crucial aims of Migros. "We try to bring the news of the spring to the customer, learning about it for the first time at our store. Regardless of the season, even if the weather outside does not agree with us, our stores adapt to the ensuing season right on time, and the customers realize this as well." Tort then added "We offer new experiences to every visitor of our stores, through our products, suggestive sales systems, thematic promotions, and section plans. Here fresh products and special fresh service sections provide us an advantage. The healthy meat we offer as the only retailer which has its own integrated plant, organic and Good Agriculture Practice vegetables and fruits, as well as products offered only at Migros help us stand out. Discount is now a standard hygiene element all around the world. The customer now asks the next question: Which store nearby offers the best product at the best price, with the best service? The critical point here is the provision of the best service, best product, and of course, an affordable price."
Declaring their emphasis on green retailing and underlining environment-friendly kiosks and bag practices, Özgür Tort stated that Bodrum Maya M Migros store received the LEED GOLD Certificate (Leadership in Energy and Environmental Design), a most widely recognized and accepted certificate of green buildings all over the world. Tort said "this store is the first and only store which received LEED GOLD certificate in Turkish retailing business. All these discerning features also indicate that we invest in the future, as well as today."
"We use technology both as a means to productivity, and as a discerning characteristic"
Stating that their stores capable of speaking the language of technology, thanks to the dynamic and innovative structure, make Migros stand out, Özgür Tort recently announced that the 'My Office' practice received the 'Best In-Store Solutions Award' at 'European Retail Technologies Award' ceremony. Tort said "the award we received through My Office is merely a result. We utilize technology as both a means to improve productivity, and an element of distinctness which touches the life of the consumer, providing utility during shopping. Some practices are visible to the customer, while some, like My Office, operate behind the scene. It is easier to copy the easily visible practices. However those operating in the back, the elements of the underlying system, are much harder to copy." Noting that the distinctiveness Migros achieved through technology affects the youth representing the fourth generation most, Özgür Tort said "in the Dog-Eat-Dog competition of the day, the technological perspective Migros puts forth, from the job applications to Migros Sanal Market, from in-store applications such as Jet Kasa to social media applications, made the stores more attractive and accessible to the youth. Such practices of Migros made it a source of attraction for the youth. They, in turn, stepped inside the store due to the attraction of technology. But what made them loyal customers was the comprehensive Migros experience they received."
"Sanal Market (Virtual Store) tripled in size in three years. We are now reaping the fruits of our vision and patience.
Emphasizing that Migros owes its innovative outlook to its always fresh curiosity for retail business, Özgür Tort said "Freedom operates in both ways with us. We both grant our employees freedom to achieve better, and provide the consumers options." Asserting that Migros Sanal Market is one of the best examples of innovation at Migros, Tort reminded that Migros established the first systematical virtual store offering food, as early as 1997. Özgür Tort said "When we opened the virtual store for the first time in 1997, no one could envision past it. We persisted, worked hard, and now we are reaping the fruits. The sales of Migros Sanal Market grew in each and every category, from frozen food to fish. In the same vein, as a result of growth and persistence with the right logistics and technical infrastructure, now Migros is a retailer which achieves profits through e-commerce in foods, a rare example in the whole world. Sanal Market tripled in volume in the last three years. This vision is crucial."