In Part 1 of the one_Mini series, Erich Stockhausen, Chairman of the Supervisory Board of REWE Group, and Thomas Nonn, Divisional Director Self-Employment and Co-operatives, explained their expectations of the BILLA merchant model. In part 2, BILLA Management Board member Brian Beck explains how he wants to further spread the commercial culture in Austria. The first BILLA merchant Marko Miskovic also has his say.
Since 1 July 2022, Brian Beck has headed the newly created "Wholesale and Retailers" division at BILLA as a Management Board member, which also oversees ADEG as an independent operating unit. He has big plans for his new role: 100 BILLA retailers are to be established by 2026.
one: Many readers will remember you from the Cologne headquarters of REWE Group, where you held various management positions. Since July last year, you have been in charge of the newly created Wholesale and Retailers division at BILLA as a Management Board member. How was your start?
Brian Beck: It's been a very good start, and things are going even better. My team and I are delighted that our department is the first point of contact for our retailers. We are ready to welcome many prospective retailers to BILLA and to provide the best possible support for ADEG retailers. With the first BILLA merchant, who opened his store in Gloggnitz on 27 October, we have set an important milestone on the way to becoming the number 1 among customers. We are pursuing this goal together as a team.
Brian Beck, Photo: Robert Harson
one: What are the advantages of strengthening and bundling the wholesale business under the BILLA umbrella brand?
Brian Beck: Having our wholesale activities under one roof allows us to pool our strengths, expertise and know-how, among other things. The REWE wholesale business - supplying ADEG retailers and other customers such as mineral oil companies - and, in future, BILLA retailers will be managed from a single source. With this organisational development, we are also making a clear commitment to the Kaufmannstum and would like to further spread the commercial tradition in Austria, which has always been deeply rooted in REWE's DNA.
one: Until October last year, BILLA only had branches - retailers were represented by ADEG at REWE International AG. Now there is also a retailers model at BILLA. What are the differences between the two sales formats?
Brian Beck: The decisive factor for a successfully managed market is that the model suits the individual entrepreneurs and their requirements. The BILLA retailers model and the ADEG retailers model are two different concepts that work in parallel. In addition, at BILLA the market is managed by a merchant and BILLA in a joint company. The ADEG retailers are 100 per cent independent, have an even greater degree of freedom and often expand their food retail business to include catering or tobacconists. (Editor's note: Trafik is a tobacco shop)
one: What ratio of branches to owner-operated stores are you aiming for at BILLA and how many BILLA retailers do you want to train in the long term?
Brian Beck: Our goal is to have fifteen salespeople independently managing BILLA and BILLA PLUS stores by the end of 2023. By 2026, 100 retailers should already be part of the BILLA family. There are currently around 1,270 BILLA and BILLA PLUS stores, with 24 new openings and 56 conversions taking place this year. So there is plenty of potential and suitable locations for BILLA retailers.
one: For which people is the BILLA retailers model particularly interesting?
Brian Beck: For current BILLA and BILLA PLUS store managers in particular, over 60 per cent of whom are women across Austria, the decision to switch to the retailers model opens up new perspectives.
one: What requirements must a store fulfil in order to become an owner-managed BILLA store?
Brian Beck: BILLA retailers are currently taking over existing BILLA or BILLA PLUS stores. Behind the store selection is an extensive location analysis process, in which, for example, the store size and customer frequency are taken into account. The development potential and stable economic situation of a location also play a role here. It is particularly important to us that retailers have a solid starting base. It is not yet clear whether new buildings can also be taken over in the future.
And that's what the merchant says:
Marko Miskovic, Photo: Robert Harson
The first BILLA store manager, Marko Miskovic, has been part of the BILLA family for eleven years. What advantages does self-employment offer him compared to his previous role as a store manager?
"The BILLA merchant model is a great opportunity for me because I can work even more independently than before, but still know that BILLA is a strong partner at my side. I made a conscious decision in favour of this model because I get more support and security at all levels. This comprehensive support and the resulting reduction in personal risk are key advantages for me and were decisive in the consideration process. As a store manager, I have been part of the BILLA family for eleven years and I am very pleased that the merchant model offers me many new opportunities. I know the region and its people - I particularly enjoy intensifying the relationship and dialogue with customers. I'm also keen to support regional and local suppliers and give them a platform," says Marko Miskovic, BILLA merchant in Gloggnitz.
The commercially managed store: new highlights and a tried-and-tested shopping experience
BILLA salesman Marko Miskovic with his team. Photo: Robert Harson
The BILLA supermarket at Wienerstraße 66 in Gloggnitz, run by Marko Miskovic, has a modern BILLA design on the outside, with the supermarket owner's surname added in large letters. Inside, it impresses with new highlights such as over 40 additional metres of shelving, meat in service, coffee to go and a cosy area that invites you to linger and enjoy a snack (editor's note: in Austria, a snack is a small snack). Marko Miskovic's personal signature runs through all areas and is particularly evident in the careful selection of local products from suppliers in the area. Among other things, the merchant works with 30 local suppliers and offers more than 160 local products in his store.
Entrepreneurial spirit and in-depth expertise - how does BILLA support its retailers?
BILLA supports retailers as a strong partner with help and advice. They benefit from the expertise and know-how of the BILLA family - for example, in the coordination of important decisions such as investments. BILLA also provides the joint companies with a balanced and attractively priced basic product range, which offers additional support and security. BILLA also supports retailers with store design, purchasing, strong own brands, a comprehensive supplier network or with questions about energy efficiency and provides technical support. In addition, retailers receive a service package with all the tools they need to run the store successfully.
