In the 2008-2010 period the company’s profit ranged between RON30 and RON40 million.
The financial crisis started to be felt by Rewe Romania in 2010, when its profit fell over 20%. In the following year the company’s profit fell six-fold and in 2012 the company switched to a loss. During this period, though, the turnover of Penny Market and of XXL Mega Discount, held by German group Rewe, continued to rise as the chain opened new stores.
Last year the company opened 14 stores under the two brands, bringing the chain to 142 units at the end of 2012, with total sales of RON1.928 (EUR432 million), up 5% in euros and 10% in lei.
From its market entrance, the German group relied on aggressive expansion, opening up to 17 stores per year. According to information previously announced by the company, 14 openings are planned for this year – similarly to those made in 2012. The new openings will require investments of EUR10-15 million, according to ZF estimates.
Rewe Romania entered the local market more than a decade ago and has currently reached a chain of 144 stores, 7 of which XXL Mega Discount and 137 Penny Market stores.
Sales per store stood at RON13.6 million in 2012, a similar value to 2011, but 20% lower than 2008 sales calculated in lei (the decline in euros is almost 40% as the leu depreciated against the euro). In 2008 the chain had around 70 stores, but at the time consumption rose double-digit.
(English version by Daniela Stoican)