Innovative Electronics Retailer Outpaces the Competition

When Nikolay Kitov and a friend founded K&K Electronics two decades ago at the very beginning of Bulgaria’s drive to develop a market oriented economy, they were taking a big chance on their country’s future. They survived the crisis of 1996-1997, built a warehouse and opened their first shop in 1999. Today, their company – which began as two men buying and selling products on the street – has grown to become a thriving private sector benchmark in Bulgaria and beyond.

K&K is not only Bulgaria’s leading electronics retailer but it has also developed a strong presence through its subsidiaries and associated companies in Serbia, Kosovo, Croatia, Bosnia, Macedonia, Romania and other markets. Even during the height of the most recent economic crisis in 2009, K&K achieved around €320 million in turnover in Bulgaria alone, and it is still growing fast. K&K triumphs over its competitors through a winning combination of high quality products and exceptional customer service. “K&K always exceeds its clients’ expectations,” Nikolay Kitov says confidently.

K&K is also a trendsetter: it was the first company in Bulgaria to sell electronics products online. Now it is benefiting from EU funds to upgrade its professional knowledge organising training programs and courses for its staff.

The company has established an expanding network of Technomarket and Demo stores and has developed its own highly successful Neo brand of home appliances which are well known in Bulgaria and throughout the region. K&K has also attracted the attention of foreign investors, including UK based investment group Trans Balkans Investments Limited (TBIL).

Partner of choice for major hypermarket chains

Major international hypermarket groups like Metro and Carrefour have chosen to partner with K&K. “Expand the market as much as possible: this is what we like to do. We will always find a way to cooperate,” Nikolay Kitov says. He welcomes more foreign investment in Bulgaria’s retail sector.

Nikolay Kitov is confident that eventually Internet sales will account for a much larger share of K&K’s total sales revenues. He explains, “Bulgaria is still very old fashioned; most people still pay for their purchases with cash. In fact, cash purchases account for 70% of sales in Bulgaria while in Croatia, 80% of sales are by credit card. We aim to stimulate the Internet market here in Bulgaria.”

Given K&K’s track record, the company is sure to singlehandedly boost Internet sales in Bulgaria while also continuing to grow and bring innovative new products to the market.