“We have not opened any new stores this year yet. Selgros is present in almost every big city of the country, with a network of 22 stores and a distribution warehouse. We plan to open a store in Baia Mare towards the end of the year,” says Robert Hellwagner, Selgros Romania CEO.
The opening of a regular 10,000 square meter Selgros store costs up to EUR20 million, which includes the land and the actual construction of the store. Selgros did not say how much investment a small store required.
Unlike hypermarkets, supermarkets and discount stores which work with consumers, cash & carry chains target resellers, i.e. the small retailers, and the hotel, restaurant and catering industry. Only two modern cash & carry chains operate in Romania – Metro, which arrived in 1996, and Selgros, which arrived in 2001.
Selgros has not closed any store since entering the Romanian market in 2001. It carefully chooses its locations and the strategy is to develop in a way that can be sustained long-term, instead of buying market share by sacrificing profitability, its official said.
The first three months of 2019 followed the trend of 2018, and the trend will continue in the second half. Selgros estimates 6% to 7% growth in 2019, Hellwagner said.
(English version by Loredana Fratila-Cristescu)