XXL causes shopping spree

“Look at these journalists! What are they doing here? We cannot buy because of them!” one could hear during the opening of the first discount store in Bucharest aimed at low- and average-income people, on April 5. All large retail networks having entered Romania so far are aiming at average- and high-income brackets.

Many people crowded at the first store from XXL Mega Discount! Brand, opened in Bucharest. The store aims at the low-income bracket, with a retail sale concept that made Rewe famous in the West.

Considering the large number of clients and the high receipts posted after the first hours (more than 500 million lei by noon), this kind of store is quite likely to be successful in Romania.

The German group holds lots of other discount store chains (MiniMal, Penny Markt), but Mega Discount is a premiere new brand launched in Romania.

“In such a store, the consumer goods have lower prices, because the intermediary or additional costs are cut,” Rainer Exel, Rewe Romania general manager, said. The buyer may find cheaper foodstuffs or white goods here, as the producers consider them on sale.

Given the forthcoming Easter Holidays, XXL will offer the cheapest chocolate eggs on the market, for 9,900 lei, as compared to 15,000-16,000 lei in downtown supermarkets and 12,500-13,000 lei at kiosks.

According to company officials, Rewe success bets on the concept of “everyday low prices,” following the agreements with suppliers, which deliver low-priced commodities.

The new store is located on aoseaua Fundeni, has a 3,500sqm-surface and 300 parking lots.

The store is open seven days a week, between 7,00 am and 10,00 pm, and has a fast food & café department where the products are prepared so that the clients can witness the whole process.

With a 25 year-experience in this field, Rewe holds a series of discount store chains throughout Europe.

Romania was included in Rewe’s expansion plans due to the high population density and large territory.

Depending on the results to be posted in Bucharest, Rewe will decide whether to further expand in other regions, both in Romania and Southeast Europe.

According to the statements of Rewe Romania general manager, Rainer Exel, the value of the investment in the new store located in Bucharest district 2 exceeds DM10 million.