The chain currently has 41 units and posted turnover of 187 million lei (EUR41.3 million) last year.
Annabella started its activity in Valcea county, Oltenia (southern Romania) almost 18 years ago. Most supermarkets are located in the county, both in county seat Ramnicu Valcea and in smaller neighboring towns.
Future expansion plans also target towns with less than 50,000 inhabitants.
In Valcea county there is one single larger city, Ramnicu Valcea – with over 100,000 inhabitants, and several smaller towns such as Dragasani and Horezu.
With a total of ten modern retail stores – cash & carry, hypermarket, supermarket and discount stores at the end of last year, Valcea is one of the “poorest” counties in this respect. This is one of the reasons why several local companies, such as Diana, Vel Pitar and Boromir, started businesses there.
Looking at small towns
The Annabella chain now has 41 stores after opening six stores last year and another four this year.
“Next year we are planning to continue expansion and open another three stores,” says Dorina Mutu, without providing more details on the locations.
If the company goes through with its plans, Annabella will reach a total of 45 stores by the end of 2013.
The retail chain operates mainly on the supermarket segment, but there are also stores that have an outdoor restaurant or a bar.
Annabella, held in equal measure by Dan and Dorina Mutu, estimates it will end this year with a turnover of around RON180 million, similar to the 2011 figure.
In each of the last few years the company has managed to boost its turnover, helped by the new store openings. So Annabella’s business has not been affected by the almost 20% overall consumption decline recorded between 2009 and 2011.
A weak agricultural year
The chain doesn’t expect turnover growth this year, with the bad weather recorded early in the year and the weak agricultural production playing an important part.
“The year 2012 has been more difficult than the preceding three. Moreover, considering that in our stores we rely significantly on our own production and on local production, mainly of fruit and vegetables, the poor agricultural year has somewhat affected our plans,” Dorina Mutu says.
The Mutu family owns several hectares grown with fruit trees and vegetables.
(EUR1=RON4.5262)
(English version by Daniela Stoican)