Juljan Mane, Vice President of BALFIN Group for Retail
In 2024, the retail sector in Albania experienced significant recovery and economic growth. But what has driven this progress? In an exclusive interview with Monitor, Juljan Mane, BALFIN Group’s Vice President of Retail, shares his perspective on the challenges and opportunities within the sector. He explains how technology, changes in consumer behavior, and the issue of informality have played a key role in the sector’s performance.
Mr. Mane also highlights the new trends that companies within BALFIN Group’s retail sector have adopted, including digitalization, online sales, proper staff training, and enhancing customer experience as essential pillars of the Group’s business model. This approach has contributed to the Group’s continuous growth in the sector and the establishment of international partnerships to introduce new brands to the market. According to him, the retail sector in the region is expected to maintain its positive trend in the upcoming year.
How do you assess the performance of the retail sector in Albania during 2024?
The year 2024 has been a year of recovery for retail trade in Albania but also in the region. Several main reasons have contributed to this recovery. First, the negative impact of the Covid-19 pandemic and that of the political and economic turmoil in the world has faded.
Second, the international supply chain has normalized, bringing significant reductions in product and transportation prices. Third, Albania has benefited from the tourism and construction boom, which have brought significant revenue to the economy.
Recently, prices in some sectors have fallen significantly, driving a positive dynamic in retail sales. All these factors make 2024 a turning point for this sector.
How has consumer behavior changed during 2024 and how have you adapted your strategy to respond to these changes?
Consumer behavior has changed significantly over the past year. Consumers have become more price-sensitive, but the biggest change has been the need for financing, especially for installment purchases.
BALFIN Group has adapted to this trend by offering, through its companies, in addition to quality products at good prices, flexible financing alternatives.
Another important change is the increasing expectations for quality service. To address this, we have invested in improving the sales experience, both in physical stores and online.
Our goal is to provide a satisfying experience for customers, so that they not only return, but also recommend us.
Consumer behavior
Consumer behavior has changed significantly over the past year. Consumers have become more price-sensitive, but the biggest change has been the need for financing, especially for installment purchases.
How do you assess the competition in the retail market in Albania? What are the main
challenges in maintaining a competitive position?
Competition in the market is increasing, and this is seen as a very positive indicator. What increases competition is the presence of international brands; it is precisely the latter that drive the improvement of Albanian companies.
However, a major challenge remains informality, which creates unfair competition and reduces state budget revenues. Deep reforms and political will are needed to solve this problem.
What were the main problems of the sector during 2024 and what solutions do you see for them?
As I mentioned above, the biggest challenge is related to informality. An informal market makes it very difficult for businesses to adhere to legal obligations. Also, the high level of informality makes it very difficult for international brands to be absorbed nto the country. International companies seek security and fair competition.
In 2024, another challenge facing the sector is finding qualified staff at different levels. The difficulties are particularly pronounced in the face of the mentality of younger generations who have a different approach to work compared to previous generations.
Businesses need to find ways to accommodate these trends, providing suitable spaces for young people while maintaining the company culture. Achieving this work-life balance is indeed a challenge.
Companies that succeed in creating an environment that embraces these changes will gain a significant competitive advantage in the future.
How do you assess the role of staff in the company’s success? Have you undertaken any new initiatives for their professional development this year?
BALFIN Group has around 5 employees, as well as around 500 others who are indirectly employed by the group’s companies but whose work is related to us. At BALFIN Group, the role of staff is essential for the success of the company and the achievement of its objectives. We consider investing in the professional development of employees as one of the main factors in their motivation and improving performance.
During 2024, several new initiatives were undertaken, including special programs for executive leaders. These initiatives are combined with career development opportunities within the Group, constituting a strong competitive advantage for attracting and retaining talent.
To my knowledge, BALFIN Group employees have benefited from over 100,000 hours of training this year – a figure that reflects commitment to continuous staff development and creating a work environment that fosters progress.
How is digitalization changing retail?
Online commerce in Albania is constantly growing, especially in the electronics and clothing sectors. BALFIN Group’s investments in digitalization are significant, and the effects of these investments will appear over time.
Our focus is on creating an “Omnichannel” approach, where the consumer can shop both online and in physical stores, having the same service experience.
The effect of tourism
Tourism, which has seen steady growth in recent years, is expected to continue to contribute positively, creating new opportunities for local trade. Tourist towns and villages will see more tourists and consequently more consumption.
How is inflation and the economic climate affecting purchasing power and retail performance?
Inflation is under control, interest rates are falling, and economic conditions have im significantly. Undoubtedly, the growth of tourism, remittances, and the development of the construction sector have contributed to the increase in purchasing power and have produced a satisfactory performance of the retail trade sector.
What are your expectations for the retail sector in 2025? How will global and regional trends affect it?
In 2025, the retail sector is expected to continue the positive trend of 2024, driven by increased lending and real estate investments, which will lead to an increase in demand for consumer goods and related products.
Tourism, which has seen steady growth in recent years, is expected to continue to contribute positively, creating new opportunities for local trade.
Tourist towns and villages will have more tourists and consequently more consumption. Meanwhile, online commerce will continue to strengthen and integrate with physical stores, focusing on improving customer service to increase competitiveness.
During 2025, BALFIN Group will focus on increasing points of sale in the country not only with current brands but also by bringing new brands to the market that will increase the offer for consumers.
Source: Monitor
