INTERVIEW Tudor Mihailescu, Freshful: “We expect Romanian consumers to become increasingly discerning, with heightened expectations around quality, sustainability, and convenience”

“In 2024, Freshful achieved substantial growth, reaching one in every seven households in Bucharest, with most of our customers placing orders approximately every two weeks. A major milestone was the launch of our recycling program, which has become a valuable tool for our customers, enabling them to contribute to sustainability and save more time for themselves,” Tudor Mihailescu, general manager Freshful by eMAG told The Diplomat-Bucharest.

“In 2025, we will focus on enhancing both our product selection and the ease with which customers find what they need. This includes expanding our product documentation and improving accessibility through advanced search and filter capabilities.”

What were your company’s most significant achievements in 2024?

In 2024, Freshful achieved substantial growth, reaching one in every seven households in Bucharest, with most of our customers placing orders approximately every two weeks. To support this growth, we maintained a competitive range of brands and products. We also made significant improvements to our service quality, achieving an on-time delivery rate of 96%, with only 4% of orders delayed. Additionally, we invested in our logistics infrastructure, doubling our operational capacity. A major milestone was the launch of our recycling program, which has become a valuable tool for our customers, enabling them to contribute to sustainability and save more time for themselves.

How did consumer behavior in Romania evolve in 2024, and how did your company adapt to these trends?

In 2024, Romanian consumers continued to prioritize value, though this concept expanded beyond price to encompass service quality, product transparency, and overall convenience. As a result, Freshful outpaced market growth due to our ability to offer a seamless and convenient shopping experience. Notably, products like locally sourced, high-quality tomatoes, which may not have been the cheapest in their category, performed exceptionally well, demonstrating that Romanian consumers are willing to invest in premium products when they offer added value.

What innovations or technological advances did you implement in 2024?

Though the retail industry might seem straightforward, Freshful’s success hinges on technological innovation. In 2024, the most visible transformation for consumers was the launch of our recycling and SGR program, which allows customers to easily exchange waste for cash rewards. Behind the scenes, we enhanced our picking and transportation algorithms to further optimize order accuracy and improve our on-time delivery. Navigating Bucharest’s traffic is no small feat, but these advancements have contributed to near-perfect delivery performance, reflecting our commitment to both convenience and quality.

What progress did you make toward sustainability goals in 2024?

For 2024, we were particularly proud of the success of our recycling program and the launch of the SGR initiative in November. After six months of planning and development, we were able to offer a smooth, tech-enabled experience for our customers. The adoption of the program exceeded our expectations, and we were able to triple our capacity within a short timeframe. Currently, we are collecting over one million packages per month, with continued rapid growth. This initiative not only supports our sustainability goals but also underscores our commitment to making a positive impact on both our community and the environment.

What are your key priorities and objectives for 2025? How do these objectives align with the evolving needs of the Romanian retail market?

Our mission for 2025 remains to simplify life for our customers by providing them with easy access to high-quality products at fair prices. We believe this aligns closely with the evolving needs of the Romanian retail market, where consumers increasingly value convenience and reliability. Our continued focus on delivering a diverse product selection, alongside dependable service, will position Freshful for ongoing growth, outpacing the broader market. We aim to build on our momentum and strengthen customer loyalty by consistently exceeding expectations.

What new initiatives are you planning to enhance customer experience in 2025?

In 2025, we will focus on enhancing both our product selection and the ease with which customers find what they need. This includes expanding our product documentation and improving accessibility through advanced search and filter capabilities. Additionally, we’re excited to grow Freshful Now, an adjacent store available through the Tazz food delivery app, designed to meet urgent, essential needs, offering the fastest delivery in the market, within just 30 minutes. With a carefully curated product lineup, we’re committed to making sure our customers can access what they need quickly and efficiently

How do you anticipate Romania’s economic conditions (e.g., inflation, consumer spending) will impact your business in 2025?

While we recognize that economic conditions, such as inflation and shifts in consumer spending, will play a role in shaping the retail landscape, our focus remains on factors we can control. By continuously offering a broad selection of high-quality products at fair prices and delivering them on time, we believe Freshful will continue to meet the evolving needs of our customers. Despite external challenges, our commitment to providing value and exceptional service positions us to thrive, regardless of the economic climate.

What challenges do you foresee in attracting and retaining talent in 2025? Are there any programs planned to upskill employees or improve workplace culture?

As the retail and tech industries continue to evolve, attracting and retaining top talent will remain a key challenge in 2025. At Freshful, we are committed to fostering a culture of innovation and collaboration, offering employees opportunities to grow and develop their skills. Additionally, we will continue to prioritize workplace culture, creating an environment where employees feel valued, supported, and motivated to contribute to the company’s success.

How do you see Romanian consumers’ expectations changing in 2025?

We expect Romanian consumers to become increasingly discerning, with heightened expectations around quality, sustainability, and convenience. Consumers will continue to demand more from brands, seeking transparency and value beyond price alone. We foresee an increasing desire for products that align with personal values, such as environmentally-friendly options and ethical sourcing. Freshful is committed to meeting these expectations by offering high-quality products, prioritizing sustainability, and ensuring that our services remain convenient and reliable.

What advice would you share with other players in the Romanian retail sector as they navigate the future?

To remain adaptable and customer-centric, because the retail environment is constantly evolving, and the most successful businesses will be those that can quickly respond to changes in consumer behavior and market conditions. It is crucial to continuously innovate, embrace new technologies, and deliver exceptional customer experiences. By focusing on building trust and meeting the needs of your customers, you will not only survive but thrive in an increasingly competitive market.