R-Kiosk: Drugstores and banks closing make room for us

Finnish chain R-Kiosk, held by Finnish group Sanoma, this
autumn has become a competitor to be reckoned with for kiosks in
big cities and sees the Romanian market as able to accommodate
1,000-1,500 kiosks. “We reached an average of 500 customers per day
per each shop. Our target is to boost the number of customers and
we are hoping to do that by changing consumers’ perception of
R-Kiosk shops; although we entered the market charging the same
prices as rival convenience stores, people perceive us as being an
expensive store because we have come with a modern retail concept,”
says Dan Vasile, managing director of Rautakirja Romania, operator
of the R-Kiosk store chain. The business sells newspapers and
magazines, cigarettes, lottery tickets, drinks and fast food, with
its concept being similar to that of petrol stations, but the shops
are located in areas accessible not only to drivers. The chain’
sales target for 2009 is 4.5 million euros, while next year’s
target is 17 million euros, derived from a 70-shop chain. An
R-Kiosk shop has a 50-70 square-metre area on average and 3-4
employees. The head of R-Kiosk stores also says rent has been
renegotiated down by as much as 50-70% because owners are left with
empty spaces due to a large number of bank branches and drugstores
closing.