Praktiker Hellas: Adoption of a greener business model

Praktiker Hellas emphasizes the services related to interior decoration and garden and terrace design, in the context of its strategic design.

As the managing director Dimitris Galanis stated yesterday during a special event, the new concept “Urban Kipos” at Praktiker Elliniko, is part of the pillar of the company’s sustainable strategy and will be gradually implemented in all stores nationwide.

At the same time, the company is expanding the program of supply of electric vehicle chargers in its network, which has started in January 2021, with the aim of better service and the best experience of consumers in the field of electric vehicles in Greece. It has already completed the supply of chargers throughout its network, while in the coming period it will further expand this supply, with even more chargers per point.

Photovoltaics

The interest of the administration is focused on the installation of photovoltaic systems on the roofs of the properties it has, in order to save energy. “We are in discussions to see if such a large investment, especially in buildings that are not ours, can recoup the costs,” said Mr. Galanis, adding that at present the subsidies given by the European Union to this framework, do not cover retail.

At the same time, coordinated actions are being taken to enhance the performance of Praktiker’s online store, which has a low single-digit percentage in turnover, while opportunities are being sought in commercial real estate for the further expansion of the store network, which now reaches 16 as the company seeks geographical expansion throughout Greece. In terms of the mix of products offered by the stores, the electrical appliances are further strengthened and are already featured in a large number of Praktiker stores, while there is also interest in the development of shop-in-shops.

Challenges

Regarding the challenges that the retail sector is called to face, Mr. Galanis characterized them as “special” with the big bet for companies to be the quick reaction and adaptability to the new environment. Asked about the increases in energy costs, he stressed that “the burden is brutal.” He typically stated that in the last quarter of 2021 the burden on energy costs reached twice as much as the forecasts that had been made and in 2022 it is three times as much. “We have a very significant burden on profitability, as a result of which we are making huge savings efforts,” said Mr. Galanis.

He also mentioned the supply chain disruptions caused by the coronavirus pandemic, in combination with the geopolitical developments and the new crisis in Shanghai, emphasizing that “the supply chain is in a panic with constant problems and inability to plan delivery of goods.” The supply of seasonal items worries the company, as a result of which it focuses on its products mainly in the European markets.

Price increases throughout 2022

On the issue of price increases, he noted that there have been increases in product prices during the last year and estimated that there is a huge possibility that price increases will continue throughout 2022.

It is noted that in the context of the event, Praktiker presented the “Our HOME changes our CITY” Sustainability Program, the goal of which is, through targeted actions in the pillar of the environment, the green operation of the company and its overall contribution to urban green with innovations that change the home and offer sustainable options, will help each home become an oxygen tank. The launch of the “Kiddos Kipos, the school project” was also announced: an initiative that concerns the country’s schools and in one part of it the Praktiker team undertakes the design and construction of green school yards – initially in the Municipality of Athens, while in the second part, it organizes in its facilities an educational program around gardening, for the participation of young students.

Mr. Galanis stated in this regard: “For us at Praktiker Hellas, sustainability and quality of life is a choice of substance. We focus on adopting a greener business model that covers the entire spectrum of our operation and relationship with our customers. We offer innovations that change the home, enabling all of us to bring nature into our lives with sustainable choices, acting responsibly while reducing our overall energy efficiency. We educate our customers, while our environmental promise and all our initiatives invite them, with simple moves in their daily lives, to become participants in changing the city, starting from our home”.