Mega Image opened 16 of those in November alone, following several million euro investments, according to ZF estimates. The company also has an online store operated in partnership with the leading Romanian online retailer eMag, so its network numbers 457 stores.
The company speeds up expansion towards the end of the year to be able to have as many stores open by December. This is when retailers make a lot of money as Romanian consumers are more willing to spend. November and December are the best months of the year for all retailers, generating as much 30% of the revenue in case of computer and electronic retail. Grocery retail, however, gets 10% to 15% of its revenue in December, according to the latest ZF data.
Early this year, Mega Image officials announced they would keep up the expansion pace of the previous years, that is more than 100 stores. The company will open some more stores by yearend, but it will be difficult to open more than 55 to keep its promise.
The retailer first started with Mega Image supermarkets, but after running out of sufficiently large spaces, shifted focus to a smaller format, and entered the convenience store segment with the Shop&Go brand. It now has more convenience stores than supermarkets, which compete with small traditional retailers.
Mega Image only opens Shop&Go’s in partnership with local entrepreneurs. The local entrepreneurs get a store to manage, with Mega Image taking care of the rent, stock and utilities, which means they operate under a management not a franchise contract. The partners are paid by revenue.
Mega Image officials said early this year they would focus on Shop&Go stores because the city did not have many large spaces left. About 80% of the Mega Image stores operate in Bucharest, while the rest around the city on a 250-kilometer radius.
(English version by Loredana Fratila-Cristescu)