The five networks invested over EUR200 million and were behind 93% of the 2014 store openings. The five companies have expansion plans for this year as well, with Profi and Mega Image intending to invest in around 100 new units each.
“Our strategy is to open at least as many stores in 2015 as in 2014, namely over 70, but in fact we target 100 new units. For 50 of these we already have the spaces. As regards expansion ways, we are open to all opportunities,” say Profi representatives.
The company wants to reach 500 units in two years, from 275 at present.
Investment fund Enterprise Investors acquired Profi’s around 60s-store network in late 2009 for EUR66 million. At the takeover moment, the fund announced its intention to double the number of stores in 3-4 years. Planned expansion investments were valued at EUR45-50 million by ZF.
Today, more than five years from that moment, the number of store has risen over four times. Profi has started expanding aggressively in recent years, when it decided to cover the entire country. Mega Image, the champion of expansion in modern retail in recent years, has a similar policy.
The company has reached 410 stores, with more than half of them opened in the past two years. Moreover, a similar pace of expansion is scheduled for this year as well, according to market data.
While it follows a similar pace as Profi, Mega Image has a different target, focusing on Bucharest and its neighboring areas.
Romania’s two discount chains, Lidl and Penny Market, are also among retailers boasting strong expansion, with 14 and 13 more stores at the end of 2014 compared with 2013.
As a matter of fact, supermarket and discount chains have been the champions of expansion in recent years since the opening of such a unit takes investments of as much as EUR2 million, according to ZF data.
Nonetheless, a hypermarket chain, Kaufland, is also present in the ranking. With over 100 stores, Kaufland is the largest hypermarket chain.
In recent years, Germany’s Kaufland pumped further money into expansion, strengthening its leading position on the market.
Thus, while the other top retailers, such as Metro Cash&Carry or Carrefour saw their revenue stall or go down, Kaufland’s revenue doubled from 2009 to 2013. Its network also doubled during the period, while rivals’ store openings advanced shyly.
In the past year alone, Kaufland opened 13 stores. The German network’s plans do not stop here, though, with expansion set to follow a similar pace in the upcoming years.
(English version by Catalina Apostoiu)