Kotsovolos CEO: Plans to invest €19m in Greece and Cyprus still going ahead

John Vasilakos, CEO & Vice Chairman of Kotsovolos – Dixons South East Europe, talks to CBN about the omnichannel store's future expansion plans in the Greek and Cypriot markets. These include injecting €19m to open new stores, relocate existing ones, and expand its geographical coverage. All this in light of UK-based Curry's announcement that it was reviewing its Kotsovolos business. "The parent company's announcement will not affect the strategy and activity of Kotsovolos in Greece and Cyprus for the time being," he said.

It was recently reported that UK-based Currys is reviewing its Kotsovolos business. How does the announcement of the possible sale of the parent company affect the strategy and activity of Kotsovolos?

We continue to dynamically implement our strategic plan, whether this concerns investments in new stores and our supply chain or the second phase of our digital transformation. The parent company's announcement will not affect the strategy and activity of Kotsovolos in Greece and Cyprus for the time being.

Please tell us about your company. When did it start its operations in Cyprus, and how many offices/employees do you currently have there?

We entered the Cypriot market in July 2021 with two state-of-the-art stores in Nicosia and Limassol, our online store www.kotsovolos.cy, and our experienced call center. In April 2023, we recently opened our newest store in Paphos at 102 Mesogis Avenue, covering an area of 1,500m². With this addition, we now have three of the largest and best stores in our Greek and Cypriot network. Despite significant challenges, our entry into the Cypriot market and our 18-month presence on the island have been a resounding success. The market in Cyprus poses high demands with intense competition, and the consumers are highly knowledgeable regarding technology-related products. Because of this, we are constantly adapting and evolving to meet the challenges of the demanding Cypriot market.

What is it that separates your company from the competition?

At Kotsovolos, we rapidly advance our digital transformation across physical and digital channels to provide our customers with the best possible omnichannel experience. Our competitive advantage lies in delivering a smooth omnichannel experience aligned with the most modern international retail practices, regardless of which channel our customers firstly use to connect with us. Also, by constantly investing in and upgrading our customer service and experience, we aim to strengthen our position in the Cypriot market and contribute to the evolution of the country's modern omnichannel retailing.

Moreover, every single point of our stores serves as a vital link in our supply chain that "unlocks" crucial competitive advantages in the broader area, such as same-day or even same-hour delivery, as well as mobile phone, laptop, and tablet repair in just one hour, through our dedicated in-store service points.

In other words, our stores represent a powerful experience point for the local consumer, who can compare, try and interact with their favorite devices before purchasing.

What has been your experience thus far in conducting business in Cyprus? Would you recommend the Cypriot market to other companies wishing to establish themselves here?

Entering the Cypriot market has been a key decision for Kotsovolos in recent years. Yes, I recommend other retail companies strongly consider Cyprus as their next strategic possibility for business expansion. The Cypriot market is exciting and a pilot for our future expansion into markets outside Greece. It teaches us to adapt to different markets while managing them remotely and ensuring dynamic, profitable, and sustainable growth.

What are your thoughts about the sector in which you operate (both locally and globally), and where do you see it going in the future?

The global pandemic resulted in significant transformations in business operations and the market, where technology has played an essential role across numerous fields. We are facing a new reality in the post-COVID era, where different challenges are constantly emerging, and the needs of consumers are constantly increasing and changing. The new conditions created by the pandemic increased connectivity, new advanced products and innovative services, and immediate adaptability to new situations, which can be achieved through advanced technology. At Kotsovolos, as a top destination for technology, we respond quickly to these evolving demands, providing our customers with integrated solutions through our omnichannel model.

Technology will play a vital role in accelerating sustainability. It is now a central objective for companies in our industry and an essential factor in achieving a sustainable future. Finally, integrating "green" initiatives in retail companies' operations is vital. It is a road map to a better, more sustainable future and a significant factor in consumer decision-making.

Where do you see your company in five years? Are there any immediate plans you can reveal to us, such as new products, services, or expansion plans?

Regarding investments, we have a comprehensive plan for Greece and Cyprus for 2023/24 that surpasses €19 million. This includes opening new stores, relocating existing ones, renovating, and upgrading our stores. Additionally, in 2023/2024, we intend to invest in our supply chain by implementing new automation technologies and unifying our warehouse. Our plans also entail investing in various technological projects, such as upgrading our call center and orchestrating last-mile logistics.

Regarding the Cypriot market, we aim to expand our geographical coverage, further strengthening our presence. Over the next five years, our plan is to more than double our current turnover and increase the percentage of our services in total revenue, reaching the levels of Greece.

How do you prioritize CSR as a member of the local community?

At Kotsovolos, we always place people and society at the center of our initiatives.

In Cyprus, we have been present with structured corporate social responsibility programs and actions in emergencies, doing whatever we can to improve people's lives. Our "Technology Without Obstacles" program ensures that technology is accessible to all, facilitating people with disabilities to have a better life by taking actions that broaden accessibility in our physical stores and digital platforms. As part of this effort, our three stores in Cyprus are accessible to individuals with disabilities, while at the same time, we are increasingly developing digital accessibility, contributing to a shopping experience without limitations or discrimination.

We also actively support and strengthen the work of SupportCY, a local volunteering network for companies initiated and organized by the Bank of Cyprus. Additionally, we stand by people in need through our team of volunteers, who actively participate in events such as blood donations or in actions organized in collaboration with the Pan Cyprian Volunteerism Coordinative Council and the Cyprus Paraplegic Association.

Finally, as a leading recycling destination in the countries where we operate, we make a decisive contribution to environmental protection. That's why all three of our stores in Cyprus operate as recycling stations for electrical appliances, while our electric bicycles make daily deliveries of small appliances to our customers with zero environmental footprints.