Selgros maintains a minimum growth rate of 25%

The Selgros Cash & Carry network of stores, which posted sales worth over 600 million euros last year, has posted a 27% increase for the first half of this year against the same time in 2006.
“This progression is due both to the opening of three new stores in the first half of the year, and to the organic growth of the old stores,” said company representatives.
The growth rate in the first quarter stood at 25%, according to data previously provided by the company.
The network currently has 16 stores, after three new units opened in the first half of the year in Suceava, Iasi and Galati, following investments worth around 45 million euros.
The company is negotiating the sale of an approximately 5,000 square-metre plot of land in Suceava, which is situated near the Selgros store and could bring the network several hundreds of thousands of euros.
The network plans to continue its expansion on the domestic market to 21 stores, at a rate of at least two new openings each year.
In addition, the company intends to ensure better territorial coverage, with potential customers having a Selgros store available within a maximum range of 100 kilometres.
Selgros continues to target the capital with its expansion plan, where it currently holds three stores, but the excessive price of land is proving to be a hurdle for the company.
The high price of land, which does not allow for investments to be recovered in a reasonable length of time, could slow down the development of modern retail, Alexandru Vlad, general manager of Selgros Cash & Carry, previously explained.
The company refused to pay 1,200 euros per square metre for land in Bucharest.
Prices of 500-600 euros per square metres in the big cities outside Bucharest are proving to be as equally unaffordable for international retailers, which are increasingly opting for commercial spaces in malls.