Vassilis Fourlis: Cyprus is a very important market for the Fourlis Group

He heads one of Greece’s largest international consumer durables trading groups, with a 73-year history, and, in spite of the difficult times, is not afraid to turn his hand, as an entrepreneur, to various sectors from electronic goods to furniture and from sports goods to land development and health and wellness.

And he makes a success of them all. Vassilis Fourlis, Chairman, Fourlis Holdings, managed to gain the trust of IKEA founder Ingvar Kamprad, bringing the stores to Greece and then Cyprus. He spoke to INBusiness about the many things that have changed for the group since then.

We met the man who introduced us to Swedish simplicity and elegance through IKEA, at the packed 7th Business Leaders Summit , where he was a speaker on, what else, retail. The last time we spoke in an interview was in 2017 and among the things I remembered was the impression he gave me that he always spoke in the first plural, which conveys respect to his team. He continues to do this to this day.

He is, after all, clear. He believes that the group's success is based on its unwavering commitment to cultivating strong relationships with employees and suppliers, investing in state-of-the-art infrastructure and prioritizing customer satisfaction over offering quality and experiences. From the time of the 1950s, when the Fourlis family business dealt with electrical goods, but also since 2001 when the first IKEA opened in Thessaloniki as a franchise partner - after four years of discussions with the Swedes - the situation in the retail sector has changed drastically. And yet, new terms and practices, such as digitization and ESG, have make Fourlis a pioneer again, thanks to his insight. He showed foresight throughout his business career. Who does not remember the acquisition of Kotsovolos and its resale to Dixons in 2004 or his decision to leave the electrical sector in 2014 and turn the group into a pure retailer in the homeware, furniture and sporting goods sectors? These are just some of the checkmate moves made over the years by the creator of the group - people are creators, after all, according to IKEA's new corporate narrative - to reach 2023.

Mr. Fourlis, how was 2023? Are you satisfied with your performance in the markets you are active in?

Fourlis Group is a strong Greek business with companies that have commercial activity in Greece, Cyprus, Bulgaria, and Romania.

We are particularly satisfied with the results of our activities in all countries, despite the global challenges that both we and the consumers have to face.

And more specifically for Cyprus?

Especially for Cyprus, the results were excellent. Intersport shows a steady course with its position in the local market consolidated. The figures for IKEA are particularly impressive, and which presented a 24% increase in sales in the nine months of 2023, compared to the corresponding period of 2022. Overall, in the Cyprus market, our group's revenues increased by 16% in the first half of 2023, in compared to the corresponding period of 2022.

In 2022 overall we recorded sales of 501.4 million euros, with online sales amounting to 69.7 million euros, compared to 77.8 million euros in 2021, also a result of the lifting of the restrictive measures of the pandemic. Of these figures, approximately 15% comes from the Cypriot market.

How did this collaboration of yours with the Swedish giant come about, since you came from another business sector and IKEA, until then, was entering the various countries of its operations by itself? How did you convince the Swedes?

Our strategic priorities are shaped by understanding the needs and preferences of each era. This is how we saw the opportunity to initially introduce the very successful IKEA brand to the Greek consumer. In the countries of Europe, it was very successful and from the beginning, we believed that the combination of quality, functional and economical home goods would be appreciated by the Greek consumer in Greece as well. We created a very detailed business plan, in order to win the trust of Ingvar Kamprad, the founder of IKEA. This process was not easy, but we showed great will and perseverance and today we feel proud to be representing the IKEA brand for 22 years.

What are your investment plans for 2024?

Our goal in the next period is the operation of additional new generation IKEA stores, such as in Patra and Heraklion, as well as in the Elliniko Project. It is a model that meets the needs of the modern consumer and is successful. At the same time, we are considering additional development activities in the area of wellness products.

Is Cyprus included in your plans for new investments either in existing brands or with something completely new?

Cyprus is a very important market for the Fourlis Group and we have special ties with the consumer public. The country's business environment has shown remarkable resilience, and quick and effective adaptation to new challenges. We are always looking for opportunities to expand our commercial activities in the country either through rationalisation of the existing network or with new stores.

We move with careful steps, weighing the market environment and the business climate. Retail initiatives remain our priority, as do investments in real estate . We are in the process of strengthening our footprint through our companies. After all, entrepreneurship that does not upgrade its activities ceases to exist.

In recent years, the markets experienced the negative effects of the pandemic and the subsequent war in Ukraine. How did these adverse conditions affect your activity and plans and how did you deal with them?

We have faced the challenges of the last decade with determination and with a plan in place. Despite successive crises, we were able to adapt our investment plan to the particularities of each condition. And of course we implemented it consistently in terms of planning and continuity in terms of the intended goals. It is true that we experienced unprecedented conditions. However, we managed to seize the opportunities behind each crisis. For example, we optimised supply chains ensuring the operational continuity of our companies, and dramatically accelerated the growth of online stores.

We move forward with insight and armed with the experience of the changes that have occurred in retail and the market in general in recent years. We tap into new trends at all levels, from the work environment and emerging skills to the psychology of the average consumer. For our group, energy transition and digital transformation are the only way to sustainable development.

How do you foresee business in the markets you operate being affected again because of the war in Israel?

We operate in the context of a globalized market, with the result that the crisis in individual of them affects all those connected to it. The effects of the war in Ukraine are still visible and with the recent developments in the Middle East the international and by extension local markets will be affected even more.

What are the biggest challenges for the retail sector today?

At Fourlis Group we aim to serve the consumer and invest in omnichannel operation. In all the brands represented by our group, in all countries, we operate physical and online stores and this coexistence is a great challenge.

The physical store remains the consumer's first choice, but it must coexist with the electronic one. It is the concern of every business to ensure that both physical and online stores offer the best possible service before, during and after the purchase. It is necessary to transform the two types into a single service channel with a common product concept in terms of dealing with the consumer.

Do physical stores take precedence over online shopping?

Consumers continue to prefer physical stores, but online ones are constantly gaining ground. According to relevant research, 42% of purchases in the EU for clothes, shoes and accessories are made online. In Greece and Cyprus the percentages are considerably lower than the European average but are constantly increasing.

How is digital technology changing retail?

Digital transformation is more than just a concept in the business world and the retail industry. It is not just adopting new technologies but redesigning business processes with a digital mindset and adopting a customer-centric approach. It is essential for maintaining businesses and their growth.

And how do you expect AI to impact retail?

Artificial intelligence has the power to transform retail intelligently. To shape, for example, innovative product trends that anticipate needs. We have made investments in our stores, both IKEA and Intersport, such as online ordering within the store and smart checkouts, which upgrade the consumer experience.

How important are ESG criteria to your group? How do they add value to businesses?

We practice entrepreneurship with ethics and transparency, carrying out actions and initiatives aimed at respecting people, creating the foundations for a better society and the conditions for a sustainable environment. We apply corporate governance management practices, having high standards of professional ethics, which are described in the code of ethics. The governance pillar is step in the right direction. And although there is an impression that it is burdensome, in fact it protects businesses and executives from excessive risks and mistakes. In the group we continue to turn quality into added value for our people, partners, society, the economy and the environment.

The Fourlis Group

Sectors of activity:

Homeware and furniture retail through the IKEA store franchise, sporting goods retail through the Intersport store franchise and most recently health and wellness retail through the Holland & Barrett store franchise (Greece). He also invests in the real estate sector with the establishment of Trade Estates REIC, a company specializing in trade parks and omnichannel logistics, which was listed on the Athens Stock Exchange in November 2023.

IKEA: 12 stores & 8 Pickups & Order Points in Greece, Cyprus and Bulgaria and e-shops in corresponding markets.

Intersport: 157 stores in Greece, Cyprus, Bulgaria and Romania and their counterparts and e-shops in every market.

This interview first appeared, in Greek, in the December edition of IN Business magazine. Click here to view it.