“We are aiming to consolidate our retail market position on the hypermarket segment, since we are the only Romanian developer in this area,” company representatives said.
Sarcina took over mid-2011 the five PIC stores previously owned by businessmen Ilie and Cornel Penescu.
The PIC group closed the network in 2009-2010, after going insolvent because of a debt, to suppliers and banks, estimated then at EUR80 million. So far, two of the former PIC stores have been launched, in Pitesti and Craiova, under the Succes brand. Thus, Succes has another three hypermarkets to convert from PIC to Succes, in Braila, Oradea and Calarasi. Sarcina’s business is the only Romanian-owned modern retail operation, after the insolvency of the Minimax Discount chain, owned by Patriciu. Right now, the Succes chain has a total 155 vending points in seven counties and in Bucharest, after aggressive expansion last year. “There were 19 units opened in 2011, as markets, supermarkets and assisted sale stores,” said Succes Nic Com representatives. The numbers do not include the two PIC hypermarkets. The Succes network covers all retail segments, starting with 20-square meter en-gross stands in shopping centers and ending with hypermarkets. For this year, the company plans to consolidate the business. “In addition, we are not ruling out new opportunities for development, since 2012 shows positive signals in terms of retail activity,” the company representatives added. There were no details offered on the number of stores to be opened this year. Betting on private labels The representatives of one of the widest reaching chains in local retail admit, however, that the economic situation is reflected in consumer behavior. Consumers are still looking for discounts. Still, people are not less interested in food products, but they have shifted their focus towards more accessible brands. As such, there has been a decline in the value of the consumption basket. No numbers were provided. “Food products under the Succes brand have gained a larger market share within the consumption basket, due to a very good price-to-quality ratio.” Moreover, for 2012, Succes Nic Com wants to create its own portfolio of private label products, which come at lower prices compared to traditional brand products. Private label products usually come at prices 20% below standard products. Some 60% of the turnover comes from retail Company representatives declined to offer details on turnover for 2011, as well as estimates for 2012. They only said “the store network represents some 60% of the business, while the remaining 40% comes from production activity (wrapping, metal systems, aluminum and PVC, mineral aggregates, concrete, etc), oil products trade, wood processing, construction and services.”. Succes Nic Com sales reached some RON200 million (EUR47.6 million) in 2010.