“The year 2022 was special, but we managed to boost sales by 33% compared with 2021, a record level. The 16% inflation was in the products we carry, in line with the national inflation. The rise in prices did not show in the shopping cart (fewer items i.e.) but in the average cash receipt, which only increased 10%. Customers went for lower priced, lighter products,” CEO Daniel Gross told a news conference.
Most of the growth of the discount retailer came from an increase in the number of customers by 12.3%, he added. The double-digit growth is an all-time high, and the trend continues. It happened when Romanian consumers were looking for lower prices and discount retailers have just that as their policy.
As for the future, Penny Romania is planning to invest more than EUR1 billion by 2029, mainly in the expansion of its network to 619 stores and its warehouses to six logistics centers from four at the moment. Part of this amount has already been invested in the last two years.
“We are investing EUR130 million in Romania in 2023, this is not just a lot but more than one third of the group’s investments,” said Michael Jaeger, member of the Rewe International AG Executive Board.
The group is investing more in Romania than in other country is operates in because it set out to reach 600 stores by 2029, following EUR1 billion investments, Jaeger added.
(English version by Loredana Fratila-Cristescu)