BBJ: How did 2024 turn out, and what are the expected business results for this year? Are you happy with Penny’s brand equity in Hungary?

Silke Janz: 2024 was a year that truly tested the agility and resilience of the retail sector. At Penny, we faced significant market and regulatory challenges once again, yet managed to maintain stable profitability and stay true to our core promise: keeping everyday essentials affordable for Hungarian families. Despite the turbulent environment, we achieved turnover of EUR 1.35 billion, representing an increase of around 5% compared to the previous year.

BBJ: How challenging is the market environment with inflation still relatively high? And how is the regulatory environment affecting your business in 2025?

SJ: The Hungarian retail environment continues to be shaped by persistent inflation and cautious consumer sentiment. Although inflation has eased slightly, purchasing power and confidence remain fragile. Households plan their spending more carefully, focus on essentials, and pay close attention to value and promotions. Private labels remain one of our strongest growth drivers. While many customers initially chose them as a more affordable option, they have since recognized their quality and reliability and continue to choose them even as market conditions improve. In categories affected by the margin cap, we have adapted our category management and promotional strategy accordingly. The narrowing price gap between branded and private-label products has also influenced purchasing decisions in these segments.

BBJ: How easy is it to find staff? What do you do to promote employer and employee branding?

SJ: The retail sector, being labor-intensive, faces significant workforce challenges. This is not unique to Penny, yet we take an active role in addressing it. Our response includes process optimization, digitalization, and flexible work arrangements across our headquarters and logistics centers for our blue- and white-collar employees.

Through automation and digital tools, we make everyday work more efficient and less administrative. For example, new transport software enables smarter route planning and automated processes, reducing office workload by around 15%. We have also moved toward a paperless logistics environment, cutting paper use by more than three million sheets in three years. These steps create a more sustainable and cost-efficient workplace while supporting long-term employee motivation.

We also place strong emphasis on employer branding and communication. We actively showcase what it’s like to work with us, especially on platforms our target audiences use, to provide a transparent and engaging view of everyday life at Penny. This helps us attract new talent while strengthening internal pride and engagement among our existing teams.

BBJ: Penny’s “Beyond People” scheme is a complex, company-wide program to strengthen its position in the labor market. How does this work in practice?

SJ: It is an employer-strengthening initiative that prepares Penny for the future of work. It focuses on what the labor market will need in the years ahead, from digitalization and new competencies to generational diversity, work-life balance, and flexible working models. The program aims to make Penny an even more attractive and forward-looking employer, where people and business success grow hand in hand. As part of our efforts, it is a source of pride for us that we were again ranked as a most favored retail employer by Top Employers 2025.

We measure success through clear KPIs, including employee satisfaction and fluctuation rates. The program also covers internal communication, influencer engagement, flexible benefits, and talent development. Our goal is to extend and personalize benefits, allowing colleagues at all levels to tailor them according to their preferences. We also plan to implement a comprehensive talent management program in 2026, building clear development paths and succession plans across sales, logistics, and HQ departments.

BBJ: The first Penny store opened its doors in Szentes on June 6, 1996. How do you plan to celebrate the 30th anniversary of Penny Magyarország in 2026?

SJ: The 30th anniversary is a remarkable milestone, a moment to celebrate together with our employees, customers, and partners. Throughout the year, we are planning both internal and public events that capture what Penny stands for: being close to people, unique in our offer, committed to quality, and consistently delivering value for money. Our celebrations will reflect the easy, caring, and community-oriented spirit that has defined us for three decades.

BBJ: How are you introducing digital innovation to your Hungarian stores and operations?

SJ: Digitalization is a critical transformation driver. Today, 73 self-checkout systems operate across Penny stores, making shopping faster and more convenient while allowing staff to focus more on customer service. We continue to invest in innovations that enhance both efficiency and experience.

In logistics, digital solutions are improving precision and sustainability across all stages, from goods reception to delivery. Route planning and automated tracking systems ensure faster, more reliable operations, while GPS-based cold chain monitoring safeguards product quality. We are also introducing electric delivery vehicles, reducing our environmental footprint and supporting long-term efficiency. For us, technology is about simplifying daily work and enabling our colleagues to focus on what truly matters: serving our customers.

BBJ: Sustainability is another key topic. What is Penny doing to make its stores and operations more sustainable and energy efficient?

SJ: Sustainability is an integral part of our strategy. All new and renovated stores meet our Green Standard, combining cost-efficiency with environmental responsibility. We have significantly reduced CO₂ emissions and gas consumption in recent years, introduced solar panels in dozens of stores and logistics centers, and installed electric charging stations in many parking lots. Energy-efficient LED lighting, CO₂ refrigeration systems, and improved insulation further help us reduce our footprint. Penny has, for the third time, received the Energy-efficient Company Award, and we actively participate in national sustainability programs, including the “Girbe-Gurba” food rescue initiative, and cooperation with the Hungarian Food Bank Association.

BBJ: Finally, what are the targets for Penny’s annual Christmas charity fundraising campaign, and where will the money go?

SJ: Supporting local communities is, for us, a year-round commitment. Throughout the year, we work closely with our long-standing partners, the Hungarian Red Cross and SOS Children’s Villages, to help families in need through fundraising campaigns, donation drives, and volunteer programs. During the Christmas season, these efforts take on a special significance, as we once again join forces with our customers and employees to bring a little extra care and joy to those who need it most. Additionally, we support the SOS Children’s Village by contributing HUF 10 million towards children’s mental health therapy sessions. We also encourage employee-driven donation campaigns, further extending our commitment to social responsibility and well-being. We believe that giving back is part of who we are, as a company and as individuals.

This article was first published in the Budapest Business Journal print issue of November 28, 2025.