1. Understanding the needs and the opportunities of the market NOVEMBER 2005

2. Contents  Veropoulos Group of Supermarkets  Veropoulos in Serbia  The Retail Industry in Serbia  The problems of the retail food industry in Serbia  Requirements of a Modern Supply Chain

3. Veropoulos Group of Supermarkets  Established in 1967  210 stores in Greece  7 stores in the Former Yugoslav Republic of Macedonia  2 stores in Serbia

4. Veropoulos in Serbia  Established in December 2002  Two stores operating in Belgrade

5. Novi Beograd Konjarnik

6.  17000 products  Around 500 business partners from Serbia  Two stores in the faze of construction  20.000 square meters sales area in 2007 Main focus on FRESH PRODUCT

8. The Retail Industry in Serbia  The market was dominated by state owned supermarkets  A big part of market was in hands of local convenience stores and “so called” cash & carry  The market in Serbia opens for foreign investors in the last four years

9.  Gradually, grocery and butchery products purchased in supermarkets Traditional Markets Super Vero

10. The problems of the retail food industry in Serbia  Quality varies  Lack sufficient product variety  Big fluctuations in price  Lack of Branded fresh products  Small seasonal suppliers  Black market

11. Requirements of a Modern Supply Chain  Quality Product  Continuity of Supply  Critical Mass  Integrated Use of Information Technology  Efficient Administration  Distribution  Acceptance of Price and Payment Terms