EVA: The Team is the Greatest Treasure
Olha Shevchenko, CEO of EVA
The time-tested business processes of the EVA network and the cohesive work of the team have been the foundation for the company during the most challenging periods and now serve as the groundwork for development.
On the Start of the Full-Scale Invasion
Thanks to established flexible processes and an effective team, EVA has experience in overcoming challenges. At the onset of Russia's full-scale invasion of Ukraine, the priority was to prevent panic and maintain rationality. Therefore, the company immediately announced that stores would operate where possible. From the very first day, they determined how remote work should proceed: they approved the frequency of online meetings, assigned areas of responsibility, and granted more authority to regional managers. The safety of employees and customers was a priority, so decisions on which stores should operate were made daily.
Additionally, it was necessary to preserve the team and temporarily replace brands of international manufacturers with their own imports to ensure the network was stocked and to optimize the logistics system. When there was a threat in the Kyiv region, they had to evacuate supplies from warehouses in Brovary, and for the first time, they used the railway.
However, by early summer 2022, the company transitioned to a more normal rhythm – they began to restore and open new stores, and by autumn, supply and the operation of all warehouses were fully restored.
On Changes in Business Management Over Two Years of Great War
After the invasion, the company reassessed projects and looked at what was needed today and tomorrow. They paused initiatives that were forward-looking and required significant investments, while those requiring more intellectual resources were implemented more actively. For example, they introduced electronic receipts, began installing self-service checkouts, released a new version of their mobile application, updated the loyalty program, and expanded the network of internet order pickup points. The war also shortened the planning horizon.
However, in 2023, the network returned to large-scale investment projects. Currently, the company is constructing a new complex in Lviv, covering 9,000 square meters for e-commerce. They also have significant plans for automation, acquiring a completely new class of equipment, and digitalizing the network.
On How They Retained Staff
The company's workforce stands at 14,000, predominantly women. Over 300 are currently on the front lines, defending the country. However, the company's HR system is prepared for the rapid search and adaptation of personnel, with automated processes. For instance, a chatbot assists new employees in the network.
Currently, there is no acute shortage of staff, but they are preparing for a possible deficit: they are implementing a corporate training program to help employees acquire the necessary skills for work as couriers and forklift drivers, and they are also working on an employment program for veterans. For example, to adapt loading equipment for use by people with disabilities.
On the Temporary Loss of Some Internal Markets
At the beginning of the invasion, the network had 1,116 stores. Due to destruction and temporary occupation of territories, the company currently operates 1,070 points. However, the plan is to return to pre-war numbers by the end of the current year. Turnover has already been restored and increased. By the end of last year, they also caught up on the number of customers: +1% in November compared to 2021, and in January-February of this year – +3%.
On Assortment, Marketing, and Logistics
In 2023, the assortment at EVA.ua grew to 120,000 SKUs. We expanded the assortment of available Ukrainian brands compared to 2021. In just the last few years, we introduced 27 new brands in the categories of household chemicals, children's products, and hygiene.
During the full-scale war, the company's marketing focused on supporting customers and the "Best Price" communication, which ensures the availability of the most advantageous offers in each category. The company actively utilizes the opportunities of the loyalty program: every two days – new products with 80% cashback in the form of bonuses, which customers can use to pay for 50% of their purchases; there is also personal cashback on selected groups of products.
In 2022, the direction of sea transportation changed, but the logistics framework stabilized through new European ports. In 2023, border blockades created transportation issues; however, the company did not cancel any planned deliveries. Currently, they plan in such a way that they have time in reserve in case of force majeure.
Regarding internal logistics, over 60% of orders from warehouses to pickup points began to be delivered by their own transport, averaging 1.7 days. This is almost twice as fast as what external contractors provided. They also began to develop their own courier delivery service for online orders in Kyiv, Dnipro, Lviv, and surrounding areas. The company is working on a model to scale this service and is also developing its own fleet, enhancing and automating warehouses.
On Corporate Values
Despite crises, the company's corporate values remain unchanged: team, customer orientation, responsibility, dynamism, professionalism, efficiency. After the full-scale invasion, psychological support programs were added.
The team is the greatest treasure, and it is something they never cease to work on.
In 2024, EVA plans to open approximately 60 more stores. For this, they have allocated nearly 200 million UAH. They will also develop e-commerce and further expand the assortment.
Special attention will be paid to courier delivery and strengthening the logistics system overall. In 2024, the total investment in logistics infrastructure will amount to approximately 1.3 billion UAH.