Selgros slows down on Romanian market

Selgros, the cash & carry division of the German trade group Rewe is slowing down its expansion pace in Romania. Whereas in 2002 it anticipated to progress at a 3 to 5 stores a year speed, it now announces it will open only 2 or 3 stores a year instead.

Selgros is therefore following in the footsteps of the other competitor on the cash & carry market in Romania, Metro, which will open only one store this year after having opened four in 2001 and 2002 each.

“We must be more careful with investments, considering the current situation of the world economy. The cash-flow trend is the main factor we will take into account when investing in the opening a new store,” chairman Rudiger Strein told Ziarul Financiar.

He added the company’s goal for Romania was 15 stores, given that the average investment per store reaches 15 million euros.

“We opened today (on Monday i.e.) our fifth store in Romania, in Berceni, southern Bucharest to be precise, and will open one more store this year at best,” Strein said.

The opening of the store in Berceni had been initially scheduled for early this year, but the bad weather conditions slowed down construction so that the dedication was postponed for this June.

“We will open one more store in Bucharest so that we could fully cover the Capital,” Strein specified.

Selgros currently operates a store in Brasov and Targu Mures each and three in Bucharest.

The Bucharest stores are located north (Baneasa), east (Pantelimon) and south (Berceni). Selgros Romania is now employing more than 1,700 people, while investments so far are in excess of 75 million euros.

Selgros Cash & Carry Romania is held by Fegro / Selgros Group (Germany), the second largest group on the cash & carry segment on the German market with a 38-store network. The partners in this group are Rewe Zentral AG Koeln (37-billion euro turnover in 2002) and Otto Versand Hamburg (nearly 23 billion euro turnover in 2002), which hold equal stakes.

The other player on the cash & carry segment in Romania is another German group, Metro, which holds a 15 store network. Metro opened its first Romanian store in 1996, and posted 600 million euro turnover last year.

Metro estimates to post 700 million euro turnover this year, given that it is set to open its 16th store in Suceava. ionut.bonoiu@zf.ro