General Director of Eurotorg: If our potential is not needed, then no. What do we know about Euroopt: assets, owners, market share, scandals, income Dear employees of the company

Dear employees of Eurotorg LLC!

I congratulate you on your professional holiday - Trade Workers Day!

Your company is the largest trade organization in the country, which every day provides modern and high-quality service to thousands of customers in all corners of Belarus. It employs almost 40 thousand people, and these are highly competent and professional personnel, whose work is in demand by the economy and society.

It is very important that your trading network strives to work not only in large cities, but also in district centers, urban settlements, and in the countryside. Unconditional respect is caused by the first results of an experiment on complex trade services for villagers in the Orsha district, which the company has recently launched. The goal you are striving for is to provide rural residents with a modern and decent level of trade service - this is not an easy task, but it is really significant.

Euroopt is a modern company that meets the needs of the times. You use advanced business technologies and make shopping enjoyable for many thousands of people!

Congratulating you on your professional holiday, I sincerely wish your company further success in development! I want to wish your team fruitful work, prosperity, confidence in the future! To each of you and your loved ones - good health, optimism, well-being and good luck! May success accompany you, and may your creative activity in retail trade continue to contribute to the economic and social development of our country, to improve the quality of trade services for the population!

Vasily MATYUSHEVSKY,

First Deputy Prime Minister of the Republic of Belarus

Dear employees of the company!

On behalf of the Board of Directors, let me sincerely congratulate you on your professional holiday - Day of Trade Workers!

Modern retail trade is a complex complex of various activities and efforts of specialists of different professions. Direct work with customers to sell goods and receive payments is the most basic and noticeable part of it. And the rear is provided by merchandisers and accountants, logistics and marketing specialists, technologists and engineers, builders and drivers, programmers and economists. Our friendly and close-knit team has almost 40 thousand people, and each of you is a high-level professional!

Our company never slows down the pace of development. We open new stores, launch interesting marketing projects, implement successful financing programs, and increase the potential for loyalty of our customers. The scope of our company is huge, and its popularity with customers is incredible. All this became possible only thanks to your sincere and selfless work, your desire to achieve real success and prosperity together.

Congratulating you on the Day of Trade Workers, I want to sincerely wish you good health, happiness and success, new labor victories and, as a result, material well-being and confidence in the future! May all be well with you and your loved ones! May work bring satisfaction, and may the fire of love and mutual understanding always burn brightly in the family hearth!

Congratulations, colleagues!

Alexander LITVIN,

chairman of the board of directors Eurotorg LLC

Dear colleagues! Dear friends!

Please accept the most sincere and friendly congratulations from the shareholders and the management of our company on their professional holiday - the Day of Trade Workers!

The enterprises and subdivisions that are part of the structure of our holding occupy a special place in the Belarusian retail market. This year our company celebrates its 25th anniversary. And it can be said without false modesty that over the years the Euroopt brand has had a huge impact on the development of the industry.

We have proved with our work that it is possible to successfully develop and provide high-quality trade services in all formats and in all corners of the country, including in rural areas. We have opened more than 600 retail facilities in the capital and regional centers, in regional cities and towns, in agro-towns and villages. We managed to create and make an online trading service convenient and in demand, which is available today for all residents of Belarus.

Euroopt and Brusnichka stores, E-delivery and HyperMall Internet hypermarkets, Technoplus, a network of household appliances and electronics markets, complementing each other, have created a full-fledged complex of retail services for the population at the modern level on the Belarusian market. This year, the system was supplemented by another brand - "Magic". Shops of the new trade network of beauty, cleanliness and hygiene goods have been liked by buyers, and a hypermarket recently opened in Minsk has become the country's largest facility selling goods of this category with the largest assortment.

Our successes and our achievements are the result of the joint work of the entire team. Today, the holding employs almost 40 thousand people, to whom our company has provided stable employment, decent wages, and a strong social package. And the contribution of each of us to the development of Eurotorg is a sincere attitude to work duties, honest work, commitment to corporate standards.

Being leaders in an entire industry is not an easy mission. We must meet the high level that we have set for ourselves. And we cannot abandon the basic principles of our work - to provide Belarusian buyers with high-quality trading service, the widest assortment and honest, reasonable prices. So it was 25 years of our development - so it will continue!

Let me congratulate you, real trading professionals, on the holiday! And wish you success, self-realization, confidence in the future, career and professional growth, courage in achieving goals! Good health to you and your loved ones, well-being and prosperity! And, of course, good luck - including the one that is "in addition"!

Let our joint work continue to be pleasant for us, necessary for buyers and useful for the country!

Happy holiday!

Andrey ZUBKOV,

General Director of Eurotorg LLC

Dear colleagues! Dear friends!

Perhaps it is customary for us on the eve of the holidays: the New Year, birthday or professional celebrations - to sum up, draw conclusions and forecasts, make plans for the future ...

I will not hide it: every year and every task for our team is a kind of challenge to ourselves. We always set goals to be better, beat our own records, pleasantly surprise ourselves, colleagues and, of course, our customers. In recent years, our company has made a lot of resounding breakthroughs, continuing to demonstrate by its own example what quality, responsibility and creativity mean in Belarusian retail.

On the eve of our common holiday - the Day of Trade Workers - I want to express my personal admiration for each of our huge team of thousands. Every day at your workplace, each of you accomplishes a small feat, thanks to which Euroopt continues to occupy the first lines of numerous ratings, the main among which is the undeniable love and trust of our customers.

We still have many tasks and projects ahead of us, opening up new horizons, achieving and raising the standards set for ourselves. And I know for sure that new victories are our common work, which we can only accomplish together.

Dear colleagues, I would like to wish you strength and patience, inspiration and enthusiasm, self-confidence and, of course, personal happiness and prosperity. We are proud of our team! We are proud of you!

Evgeny ZHIGIMONT,

First Deputy General Director of Eurotorg LLC

Dear Colleagues!

From the bottom of my heart I congratulate you on our common holiday - the Day of Trade Workers! People working in this area have always been distinguished by their special adherence to principles, perseverance and diligence, and therefore our holiday is a day of truly strong-willed professionals who are passionate about their work.

In recent years, Eurotorg has not only strengthened its leadership position in the domestic market, but also loudly declared itself in international markets: the demand for Eurobonds issued by us exceeded supply by almost six times, which made it possible to attract the investments necessary for development on favorable terms. Moreover, Eurotorg became the first company in Belarus whose securities issue was named “Best Debut in Emerging Markets” within the framework of the prestigious GlobalCapital – Bond Awards. Our company continues its rapid development. And without a shadow of a doubt I will say that we did it all together!

On the occasion of the professional holiday, I would like to wish all the employees of our company - in Minsk and in the regions, in offices and "at the forefront" - success in their careers, mutual understanding in the family and team, achievement of goals, financial well-being, harmony with oneself and the world and, of course, , good health. Enjoy what you do, create a holiday around you every day. May your every step and every action bring tangible results and delight you day after day!

Happy holiday!

Alesya Sapunova,

CFO Eurotorg LLC

We have built 4 graphs that show that the Euroopt retail chain is an exponentially growing business. Growth began suddenly.



The history of Eurotorg, which owns the largest private retail chain in Belarus, can be divided into two stages. The first one looks like this.

  • 1993 - the beginning of the company's work on the wholesale of food products.
  • 1997 - opening of the first Euroopt store in the format of small wholesale trade for retail customers.
  • 1998-2008 - opening of 8 stores and the first hypermarket.

From 2009-2010 the second stage begins - the retail business of Eurotorg is growing impressively fast.

Explosive network growth


Every year the number of Euroopt employees increases by 6-8 thousand


Annual revenue is approaching $2 billion.


Net profit is growing steadily


Source: Eurotorg LLC data, own calculations based on the current exchange rate

In 2011, the ruble devalued. In dollar terms, Eurotorg's profit grew slightly. But then it grew rapidly - just like revenue.

Over the past five years, about $700 million has been invested in the development of the network, of which $500 million has come from loans.

At the end of last year, in terms of retail turnover, Eurotorg was second only to the state-owned Belcoopsoyuz, which has more than 9,000 retail facilities throughout the country. Judging by the charts and statements of the Eurotorg management, the company intends to be the number one retailer.

But neither the top management nor the founders of Eurotorg have yet revealed the most important mystery of the company: what exactly happened in 2009-2010, after which the company began to grow so rapidly?

Foundation date: 1993

CEO: Andrey Zubkov.

Owners: Sergey Litvin, Vladimir Vasilko.

Business model: Prices for some products in the Euroopt network are lower than in other retail chains.

Businesses that are associated with the Euroopt network and its owners: SOOO "Minsk Melkombinat", CJSC "Minsk Grape Wines Plant", Eurotorginvestbank, sausage factory, production of preserves, dumplings ("Economy Market") in Minsk and Minsk region, Eurotorg chain of stores in Russia, Fresh Market retail chain in Lithuania.

Why did Belarusian entrepreneurs love Smolensk so much that almost on every street in the city you can see a sign indicating the nationality of the store owner? Can you trust the stereotype that if it is made in Belarus, then you don’t have to worry about quality? On these and other topics, Portfolio spoke with Andrey Zastensky, General Director of the Eurotorg retail chain in the Russian Federation.

From bank to retail

Did you immediately enter the retail industry?
- I started my career in finance. For more than 12 years he worked in the banking system of the Republic of Belarus, starting from the position of an economist and ending with the managing director of one of the Belarusian banks. At various times, he managed his own small business, and the most diverse one: from two fitness clubs to consulting: a loan broker and a collection company.
In the course of the banking service, I had to communicate closely with business representatives from various industries, which made it possible to look at the activities in almost all areas of business from the inside. I think it was a very valuable experience.

- Nevertheless, now you have made your choice in retail, working in a large retail chain.
- I got into the Euroopt group of companies (on the territory of the Russian Federation - the Eurotorg trading network) about five years ago, and by the way, thanks to business connections that appeared during my work in the banking sector. At Euroopt, I was offered the position of financial director of one of the enterprises that are part of the holding. A year and a half ago, the holding began to actively develop its activities in terms of opening a chain of stores in Russia, and I was instructed to lead the establishment and development of the Eurotorg retail chain in the Smolensk region. Since then, I, a native Minsker, have become a resident of your city.

- Now several large retailers work in the city. How to withstand the competition?
- Today's retail market in Russia is very developed and the competitive environment is quite high. In the market of the Smolensk region, there are both large federal players and foreign companies with a worldwide reputation. Local networks, which are not very large by federal standards, but are actively developing, cannot be discounted. In such a situation, it is obvious that in order to attract buyers, it is no longer enough just to offer goods at lower prices than competitors. Any company has to find its niche, its unique strategy and competitive advantage. In our case, in addition to consistently low prices, this is an emphasis on primordially inexpensive, but at the same time high-quality Belarusian food products.

The main topic of this Portfolio issue is logistics, so I can't help but wonder how this system is built in your company. Indeed, for any retailer, logistics is an important link in the overall activity.
- Yes it is. And so we initially chose the path of creating a logistics infrastructure for the stable operation of existing stores and with the expectation of developing our distribution network. In Belarus, we have several of our own logistics centers, our own fleet of trucks. On the territory of the Smolensk region, we also strive to build a similar model while working on rented warehouse space. But with the growth in the number of stores, sooner or later we will come to the creation of our own logistics center. Without this, it is practically impossible to develop a stable activity in the field of retail. A developed logistics system leads to cost optimization, gives the stability of the product range and the ability to reduce purchase prices for goods.

Belarusian expansion

Tell me, why in Smolensk are there so many shops and stalls, in the name of which there is the word "Belarusian"? And I will not say that buyers bypass them. Rather the opposite.
- I can only assume that the inhabitants of Russia, including Smolensk, have had an opinion since the times of the Soviet Union that Belarusian goods are high quality goods. As GOSTs were observed in relation to them twenty years ago, so they are still observed. For the most part, this is true: all large Belarusian enterprises have remained in the hands of the state, which imposes really strict requirements on the quality of raw materials used and finished products.

It is difficult to argue about large manufacturers, but there are probably many small firms that bring the same sausage to Smolensk, but of dubious quality.
- Speaking in general about the high quality of Belarusian goods, I would not vouch for each enterprise. I think that, as in any other country, in pursuit of price, a small producer can deviate from established quality standards. But I repeat, in Belarus the main producers are under the control of the state, and there the control is very, very serious, starting from the raw materials used, entering the enterprise, the technological process of the production itself and ending with the quality control of the finished product.

Smolensk smeared with honey?

But why is Smolensk and the region feeling such a powerful expansion of Belarusian goods?
- I can assume that the main reason for the interest of Belarusian entrepreneurs in your region is the favorable economic and geographical position of the Smolensk region, which has already been mentioned more than once. The region is very conveniently located on the transit route from Europe, Belarus to the central part of Russia. Belarusian transport organizations actively use this, for Belarusian trade enterprises it is logical to consider Smolensk as a base platform for promoting their goods in the central part of Russia, including Moscow.

Will the increase in the presence of Belarusian entrepreneurs in Smolensk continue so actively in the future?
- I do not think that we should expect any sharp jumps in the near future. The majority of large Belarusian companies have already opened their offices and operate in Smolensk. A sharp expansion of business areas and the arrival of any very large players is unlikely to happen, but as for a gradual increase in trade within existing segments, such a scenario is quite possible. Although the Belarusian authorities and the producers themselves have always been focused on expanding exports. There are many goods in our country that can be offered to the Smolensk market. Time will show.

And what, in your opinion, is the lethargy of Smolensk businessmen? Why don't they follow the example of their Belarusian colleagues, don't explore new sales markets?
- I am familiar with a number of representatives of the Smolensk business and I do not think that Smolensk entrepreneurs are not actively working on the territory of Belarus. We also have the largest Smolensk enterprises, such as Smolensk Diamonds, as well as smaller companies whose business is interconnected with the Belarusian one. Your transport companies are showing enviable activity in transit activities. Smolensk builders are making themselves known more and more, building facilities, primarily in the border regions of Belarus, in particular in Vitebsk. It’s just that initially the export potential of Belarus in relation to the Smolensk region is higher, since it was firmly established back in Soviet times, when Belarus was called the “big assembly shop of the USSR”, and powerful enterprises were created that could provide the entire vast country with their products. Until now, these enterprises have remained in state ownership and continue to produce competitive products. And of course, they are looking for new markets, including in the Smolensk region. New enterprises that are being created both in our country and in Smolensk do not have such a production potential, therefore, it is very difficult for them to develop new spaces, primarily abroad. And should they do it if the local sales market is sufficient in capacity for their production capacity?

Do the Smolensk authorities create any special conditions for Belarusians to develop business in the region?
- As far as I can see, no special conditions are being created for us. Rather, the Smolensk authorities support local businesses to a greater extent, which is logical in principle. At the same time, it should be noted with gratitude that the administration of the region is always open and makes contact with Belarusian entrepreneurs who work for the benefit of the region, create new jobs and replenish the budget.

The end of the era of small shops

It's no secret that the activities of large retail chains pass through the activities of small retail outlets like a bulldozer. Do you understand that large retail simply stifles small business in Smolensk, which is based on trade?
- This is a matter of evolution: there is a trend towards consolidation of business all over the world. For the population, this is only an advantage: large players offer lower prices with quality control - the buyer only wins. Large companies bring more funds to the budget, create new jobs.
Part of the small business suffers from this process, of course, but there is always room for shops with an exclusive offer of goods, which can choose their niche and successfully compete in it.
with big companies. In addition, if a private retailer feels its strength and desire to develop its business, it can take the path of acquiring a franchise and develop even more actively, gaining all the advantages of a large network. Small retail chains can also compete with the feds in terms of price - in Russia, purchasing unions have already developed, which unite small players to build a common logistics system and obtain more attractive prices from suppliers due to economies of scale.

And the Smolensk people selling in the stalls are left without work.
- Why? They get jobs in the same large retail chains that can offer them a normal social package and, usually, higher wages. Moreover, even those who considered themselves an entrepreneur, meaning by this the ownership of one or two stalls, having gone to work in the retail sector, began to earn more. Although now they are formally hired workers. Here much depends on the person himself and his ability to move up the career ladder. There are more career opportunities in large retail chains.

Nevertheless, it is in supermarkets that one of the biggest problems is staff turnover.
- Yes, in Smolensk this is especially sensitive for us. In terms of line personnel (salespeople, cashiers), staff turnover is associated with a large supply of similar vacancies on the labor market in this segment. Each retailer solves this problem in its own way. We try to offer a more competitive salary, a social package, and also develop our own motivation system for each category of employees, thereby allowing the team to earn based on the work they have invested.

Leadership must be flexible

What method of directing subordinates did you personally choose when you became the CEO?
- In different cases, I think you need to behave differently. In terms of communication and setting goals for office staff and middle management, as a rule, I try to convey the ultimate goal and discuss a step-by-step action plan together. Here is a more liberal approach. In terms of working directly with line personnel, you just need to bring clear instructions to employees and control the accuracy and timeliness of their execution.

What comes first for you: career growth or personal life, family relationships?
- In fact, a difficult question that I thought about more than once. Probably, ideally, they should be on the same scale. But that doesn't work. Often, at some point, work outweighs. But there must be a personal life and a career. However, at different stages of work, priorities shift. When an enterprise is being formed, the foundations of its further activities are being laid, when you are moving forward a new project, it is clear that you spend all your energy on work. Personal life fades into the background. Nothing without this. But having achieved a certain result and having built the main processes, a little more time should be devoted to the family, otherwise the balance will be disturbed.

About fitness, tie and traffic jams

Andrei Zastensky. 37 years. Graduated from the Belarusian State Economic University. Native Minsker.

What is your passion, hobby?
- Fitness. I try to go to the gym about three times a week.

Where do you like to spend your holidays, do you have any favorite countries, cities?
- I prefer active recreation, when you can get acquainted with a number of states at a time. Therefore, I cannot say that I have a favorite city or country in general abroad. The last time I spent my vacation two years ago was driving a car, driving along the roads of Europe. By the way, this was my first vacation in five years.

Are you an experienced motorist?
-I have been driving for more than 20 years, I really like to drive a car, but recently I have been moving in a company car with a driver. It's just that when you sit behind the wheel yourself, it is extremely inconvenient and often impossible and dangerous to solve current business-related issues.

What style do you follow in clothes?
- Strictly business. More often you can see me in a suit, but without a tie. The tie, as an integral attribute of the dress code of a bank employee, probably remained in the period of work at the bank.

As a visitor, what is most embarrassing in Smolensk?
- Traffic jams. With a relatively small population of the city, they are simply monstrous. Probably, the building structure of your city, laid down in ancient times, is largely to blame for this, which has now affected the entire transport system of Smolensk.

Do you have a favorite place in Smolensk?
- I like the city center, your parks and squares. They are very nice to walk around after work.

At a meeting on June 13, the Public Advisory Council under the Ministry of Antimonopoly Regulation and Trade (MART) did not support the proposal of the country's largest retailer Eurotorg SOOO (Evroopt trademark) to increase the permitted market share for one legal entity. The majority of council members voted against the proposal.

Photo euroopt.by

Since 2014, the legislation on trade has a norm that limits the presence of one legal entity to 20% of the turnover in a particular region. When this share is reached or exceeded, it is prohibited to open new food retail facilities in the region. The management of "Evrotorg" this share to 35% or completely remove this norm.

“We believe that in the first place it is necessary to take care of the interests of the population. In this case, we can say that the 20 percent barrier today affects the interests of the population of small towns up to 50 thousand people and villages. These are 23 thousand villages and 168 cities. And today they live without a modern trading format. At the same time, prices in traditional shops in the villages are 30% higher than in the city. That is, people who earn less are forced to buy products more expensive.- said the general director of Eurotorg LLC Andrey Zubkov.

According to him, the barrier prevents the retailer from developing in small towns and rural areas.

Zubkov considers claims against Euroopt regarding its monopoly among other retail chains to be unfounded, since, in his opinion, about 20% of the turnover of all trade organizations - "this is not a monopoly yet".

“We do not want to stick out only our interests in this situation,” he declared. - In fact, we just plowed three times more than the rest, and acted five times faster. Nobody threw us anything from the sky - neither God, nor the state. Everything that we have done, we have done with our own hands, working every day in the sweat of our brow.

The CEO of the company said that its annual sales are about $2 billion. At the same time, large-scale marketing campaigns carried out in recent years have led to an increase in turnover by only 2-3%. Zubkov also confirmed that the profitability of Eurotorg, including the wholesale link, exceeds 25%.

According to the Minister of Antimonopoly Regulation and Trade Vladimir Koltovich, in a situation where the proposal to adjust the barrier comes only from the market leader and is not supported by either business unions or the specialized Association of Retail Chains, the majority of whose members opposed this idea, its implementation will not lead to the development of competition, but, on the contrary, can cause monopoly by one player with powerful market power.

“We are for the development of trade networks and infrastructure, but against monopolization. Our figures for the shares of retail chains are closed, but I can say that the only chain that has come close to the threshold of 20% is Evrotorg. Next comes the Korona network, which has an eight times smaller share. From this we can conclude that it is unlikely that today a change in this norm will contribute to an increase in the shares of other networks and increase competition in the market,”- says the head of MART.

In addition, Koltovich emphasized that the monopolization of the retail market carries risks for the banking sector, which is a retail creditor.

Koltovich recalled that within the framework of the Presidential Decree of September 22, 2017 “On the Development of Trade, Public Catering and Consumer Services”, local councils of deputies have the right to decide that the 20 percent restriction does not apply in their region.

According to the co-chairman of the Republican Confederation of Entrepreneurship Viktor Margelov, the business community opposes "dimensionless development of some subjects at the expense of others."

“We respect large networks and believe that such enterprises should be in this country, the only question is measure and responsibility. But it is necessary to make such decisions taking into account an integral strategy for the development of trade, where there is a place for everyone,” he stressed.

Director of the Entrepreneurship Department of the Ministry of Economy Irina Babachenok said that in May the proposal of Eurotorg had already been considered by the public advisory council under the Ministry of Economy and was not supported.

However, for its part, the ministry proposes that in Minsk and regional cities the maximum share of the presence of one trading entity be left the same - 20%, and for the regions it should be increased to 25% in order to completely abandon such restrictions in favor of the general norms of antimonopoly legislation within a few years.

Following the meeting, Zubkov said that the trading network intends to adhere to the norms of the current legislation, if its potential in the development of regions "not needed". “We are not going to fight either with society or with the state. If you don't need our potential - no, no. he concluded.

According to the commercial register as of May 30, since 2014, the number of Euroopt stores in the country has more than quintupled to 626, or 3.5% of the total number of grocery stores. At the same time, only 96 of them (15.4%) are located on the territory of rural settlements. The total retail space of the network's stores is more than 12% of the space of all grocery stores. Euroopt is the leader in terms of retail turnover. In 2016, the share of the network's turnover exceeded the threshold value of 20% in 56 districts and cities, as well as three regions.