As Novac writes on the 7th of October, 2020, Pevex (formerly Pevec) officially opened the doors of its new centre to customers on Wednesday at 07:00, kicking off business in a new location in Slavonski Brod.

The new sales centre in Slavonski Brod employs a total of 48 employees who will help customers with Pevex's offer of more than 50,000 items from both Croatian and foreign suppliers.

It's worth clarifying that Pevex has already operated in Slavonski Brod, but the new centre is in a more attractive location in Naselje Slavonija II No. 4 and it has additionally hired 5 new employees.

The opening was held in accordance with the prescribed epidemiological measures of the National Civil Protection Headquarters of the Republic of Croatia.

''After the opening of our new sales centre in Vinkovci in September this year, the time has come to modernise our centre in Slavonski Brod. The new centre has a richer offer that covers as much as 5,118 square metres. This is another significant step in our long-term strategy where we want to be present in all areas with more than 15,000 inhabitants,'' said Jurica Lovrincevic, President of the Management Board of Pevex at the opening of the new outlet.

New facilities, continued investment and more employment

Compared to the old one, the new Pevex sales centre located in Slavonski Brod also has a number of accompanying facilities, such as a car wash and a café.

Since back at the end of 2015 (the final year of the company's previous management), Pevex has opened ten new sales centres and hired more than 700 new employees. Today, Pevex boasts 26 sales centres, of which 12 are owned, while at the end of 2015, only one sales centre was actually owned by the company.

Despite the ongoing coronavirus crisis, the construction of new sales centres next year and investment in a new business model of delivery centres are also planned.

''In the new year, we plan to open as many as two new centres - in Pozega and Porec. We're also launching a business model of delivery centres. We plan to open two such centres by the end of this year - one up to 500 m2 and the other up to 1000 m2. In 2021, we'll open them in a number of cities. Gospic, Ogulin, Otocac, Zabok, Krapina and Knin are the first already announced locations where we're looking for landlords, but others are also possible. The crown of the new development phase of the company is certainly the large logistics and distribution centre near Zagreb. The value of this investment stands at 300 million kuna, and for the realisation we're looking for a piece of land of 200,000 m2,'' announced Lovrincevic.

However, before the aforementioned investments, Pevex is waiting for the opening of a new sales centre in Makarska this year, where its business will move from the old centre at some point in November.

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The ongoing coronavirus pandemic has seen many a planned investment grind to a halt or even be flushed down the proverbial toilet, but Pevex (formerly Pevec) is steaming ahead with its investment plans for autumn, regardless of the economic threat the pandemic continues to pose.

As Poslovni Dnevnik/Suzana Varosanec writes on the 21st of August, 2020, Pevex has big plans for the cooler months, and the virus isn't going to get in its way.

''The coronavirus pandemic has taught us that we need to act quickly, so we're stepping up the momentum in which we're continuing one of our main business determinants - investing in expanding the retail network with two new sales centres per year in places with more than 15,000 inhabitants, but we're not going to just stop there,'' said Jurica Lovrincevic, the President of the Management Board of Pevex in conversation with Poslovni dnevnik.

In order to be more accessible to an even larger number of consumers at no additional cost, they are launching, he added, a business model with delivery centres modeled on those of the wildly popular Ikea, which involves some leased space at Pevex's centre in Pula. However, Pevex’s model is different, and developed solely for its needs.

Two such centres are planned to open by the end of the year - one will cover up to to 500 m2 and the other will cover up to 1000 m2, and the others will open throughout 2021 in a number of Croatian cities. Gospic, Ogulin, Otocac, Zabok, Krapina and Knin are the first announced locations in which Pevex looking for landlords, but other locations are also possible, according to the main man of Pevex.

Due to such and similar investment activities, regardless of the ongoing coronavirus crisis, Pevex's new projects are welcomed across all local communities and among potential partners with whom they're negotiating. It could therefore be concluded that many want Pevex as an investor to come to them in one way or another with any type of centre and develop a business at their location, pay local taxes and most importantly - employ local people.

In this sense, the project that Lovrincevic says is considered the crown of the new development phase of Pevex - a large logistics and distribution centre near Zagreb, stands out.

He says that many mayors and other such individuals in the Zagreb area want to attract this mega investment. As things stand, strong competition in the background is evolving in the real estate market, apparently further fueled by reduced demand due to the coronavirus crisis, which Pevex didn't expect.

"We received about 20 calls in a week from a number of local self-government units, as well as from private investors. All of them are offering us space for the construction of a unique logistics centre which will cover more than 60,000 m2, the investment value of which is 300 million kuna, while for the total realisation, we're looking for land covering 200,000 m2.

The investment study was made by Deloitte and shows how construction within the 30-kilometre ring in Zagreb is possible, provided it is connected to the motorway network,'' explained Lovrincevic, adding that the best offer will be selected by the end of the year.

The number of centres where Pevex operates has already grown significantly when compared to the situation when financial and ownership restructuring was carried out. With 8 centres before bankruptcy, and with a new one set to open in Vinkovci, the number rose to 26 centres, and this data confirms that the coronavirus, as well as the significant loss of revenue of about 100 million kuna they suffered during lockdown, failed to slow down Pevex's investments, nor did it manage to reshape the company's investment plans.

The expansion plan on both the continent and on the Adriatic includes two new centres next year - in Pozega and Porec, and the company is benefiting from a special circumstance in which they have developed their own capacities to quickly implement new projects.

"Two new projects that we've realised this year in regard to property actually owned by us are the centres in Vinkovci and Slavonski Brod. We'll organise the opening of the Vinkovci centre in the first week of September, while in Slavonski Brod, where we're leaving the leased space and opening a new centre in our own property, we'll open exactly a month later,'' announced Lovrincevic.

When asked what the predictions are regarding business risks, especially taking into account the dark forecasts of the deepening economic crisis, layoffs and reduced employment, with a negative impact on the personal consumption factor, the Pevex boss responded:

"If a severe crisis comes, it will be at the expense of our profits, not at the expense of Pevex's development. We've accumulated reserves that are the basis and the answer, so we're ready for all scenarios.''

Pevex's investments this year also include an investment in the coastal town of Makarska which will take place this autumn. Pevex is moving to a leased space in a shopping centre that was owned by the former Agrokor (now Fortenova), but was sold to a Dutch fund and has been used by Konzum and Velpro so far.

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As Suzana Varosanec/Poslovni Dnevnik writes on the 28th of March, 2020, the largest Croatian non-food chain, Pevex, has now opened all five of its shopping centres in Zagreb with mandatory restrictions on the number of people in each centre depending on its size.

Pevex (formerly Pevec) will adhere to all the measures still in place so as not to create crowds and to make sure enhanced hygiene and the organisation of work are properly applied in order to respect social distancing.

Pevex CEO Jurica Lovrincevic says they have made it possible to pay in twelve installments for about 86,000 customers - mostly small businesses and trades - through membership of the Pevex Partner programme.

"We've taken on the cost of financing interest and fees for twelve installments with respect to all 86,000 of our partners on ourselves, these are small businesses and artisans. We need to be as flexible as possible in these new conditions,'' Lovrincevic said, adding that they're cooperate with most domestic manufacturers of cement, plaster, tile and other materials needed for construction, and that the centres will also remain open on Sundays between 08:00 and 14:00.

The ban on the operation of construction equipment stores in Zagreb and Krapina-Zagorje was quickly lifted following the earthquakes to facilitate the reconstruction of damaged structures at the request of the Croatian Chamber of Commerce Construction Association.

Mirjana Cagalj of the aforementioned association emphasised that more than 25,000 earthquake damage claims have been submitted, and all of these facilities will need rehabilitation to some extent or another.

"I personally went out into the field immediately after the earthquake and I know full well the extent of the damage. That's why I'd like, once again, to invite our construction companies, equipment manufacturers and citizens to contact us, and we'll help them in coordinating the reconstruction,'' said Cagalj, praising the understanding of the Civil Protection Headquarters, which reacted promptly and lifted the ban.

According to the Croatian Chamber of Commerce (HGK), this is a real opportunity to incorporate Croatian materials into damaged buildings and houses, thus helping the citizens affected by the earthquake, as well as our own companies in the construction sector.

"That's why we'd like to invite domestic manufacturers of building materials, paints and varnishes and all other equipment needed for damage repair to become more actively involved in the reconstruction action, and we urge citizens to buy Croatian products as much as possible," Cagalj said.

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As Poslovni Dnevnik writes on the 18th of March, 2020, Pevex (formerly Pevec) is attempting to keep its stores open despite the coronavirus outbreak wreaking havoc with the economy, and it has secured six months' worth of salaries for its employees.

The Pevex retail chain reported on Wednesday that it wouldn't lay off employees even if individual stores were forced to close due to the spread of COVID-19.

"Pevex will not lay off its employees, even if a particular store closes due to the virus. We've secured a net wage payment for our workers for six months and we're currently focused on further strengthening measures to reduce social contact with the now-strengthened hygiene protocols at all high-risk locations,'' a statement from Pevex, signed by CEO Jurica Lovrincevic, stated.

It has also been noted that the range that Pevex sells in its retail stores is absolutely vital to the Croatian construction sector. This, they point out, is especially true for small businesses and craftspeople for whom the company wants and needs to enable a smooth continuation of operations. Pevex also stated that they are currently cooperating with over 83,000 legal entities.

They also added that "we must not be fooled by the thought that the state will be able to respond to the number of requirements that would allow for economic recovery."

They also note that Germany has recognised all of the above and the damage closures and disruptions would cause to their own domestic economy and beyond, and has as such excluded centres for the sale of building materials and other, similar supplies from the work ban, in addition to self-service shops, pharmacies, beverage stores, drugstores and pet shops.

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