Interview with Oleg Merchenko, CEO of LLC “PAKKO Holding”

Oleg Merchenko, CEO of LLC “PAKKO Holding”

You have been taking part in the Forum for the second time. What are your expectations?
I regard the Spring Business Forum as an interesting discussion platform for analyzing business’ development prospects in Western Ukraine and possibilities of investments’ attraction. Our company makes business in retail sphere, a sphere where financial resources have always been vital for development of the business. During the economic crisis investments into the economy of Ukraine have almost stopped and retailers as well as manufacturers, distributors, customers felt crucial need in funds. However now, with the gradual improvement of economic situation we hope that Ukrainian trade will get a new boost for development. Spring Business Forum can encourage that.

What have you changed in the company’s operation during the economic crisis?
We have optimized our product line, simplified it by limiting the number of our brands in favor of products with competitive prices. Secondly, we have reduced our costs. We work actively on concentration of  business in Western and Central Ukraine, increase effectiveness of logistics, improve management system of the product line, introduce new programs for clients, develop the direction of our own trade mark.

Have you changed personally as a company’s manager?
As a world around us is changing, we should change ourselves too. I have become more harsh and decisive and make managerial decisions faster. Because of the crisis I personally as well as our team of top managers could see the company in a different light, see hidden reserves and potential we haven’t been using before. Whereas during the time before crisis not only our company, but also all Ukrainian retailers have been growing mainly in a quantitative ration, now it’s time for a quality growth. I think that having overcome the crisis, many companies will be working in a different way- more fruitful one.

What are your plans for the nearest future?
At the moment we are preparing to open a number of new shops in a supermarket format in Western and Central Ukraine. We are planning to develop a franchising direction as we see large prospects here. In general, I am optimistic about the retail prospects in Ukraine.

For reference: PAKKO Holding is a team of professionals, who define tendencies in the Ukrainian market of retail since it has been established. The company is developing in a dynamic way, increasing investments into new objects and employees.
Our retail chain consist of 64 stores, 54 of which are “Vopak” supermarkets, 10- self-service “PAKKO” warehouses as of March 2011. Company’s shops are situated in 9 regions of Western and Central Ukraine.
In the terms of retail facilities, annual turnover and awareness among customers and partners PAKKO Holding has been in a top 10 list of the Ukrainian grocery trade chains  during a long time.