MiniMax Discount to see profit after 30 stores

The Minimax Discount store network, developed by the former head of the XXL Mega Discount network, Rainer Exel, last year saw losses worth 1.4 million euros (5.1 million RON) in its first year of activity. “The results of the financial year reflect the structure of our business model,” commented Daniel Gross, financial and administrative director of Minimax Discount. Minimax representatives estimate to make a profit after the 30th store is inaugurated. “The discount model involves the existence of a logistic centre where the merchandise is collected from suppliers and then distributed through the centre”s own means to the space where it is to be sold. This logistic centre should be able to provide support for some 50-70 stores and its costs are more or less fixed. This is the reason why the break-even point is met only after a big enough number of stores are opened, 30 in our case,” explained Daniel Gross. The first three Minimax Discount stores opened last year, entailing investment worth a total 2.25 million euros, to which investments in the main Minimax storage facility were added, as well as investments in vehicles used for distribution. Last year, after 8 months of activity, the Minimax Discount store network posted a turnover worth some 7 million euros (25.6 million RON), equivalent to average sales of 2.3 million euros per store. ZF