Kaufland aims for 9 supermarkets in Bucharest

German-based discount hypermarket network Kaufland intends to increase its number of stores in Bucharest from 2 to 9 in the long run. “In the medium run, the network could reach 5 stores in Bucharest. This year, we do not have any plans in Bucharest,” specified Adrian Viman, general manager of Kaufland Romania. The manager aims to maintain the company’s accelerated expansion rate this year, but did not say how many new stores will open in 2008. Investments could reach over 110 million euros, if last year’s rate of openings continues. “Given the workforce shortage in the constructions sector and the around 40% increase of construction costs, it is difficult to give an accurate estimate as to the number of stores that will open this year,” says Viman. However, the company is expected to invest in the expansion of its logistic centre in Ploiesti this year. Viman forecasts the local market will encounter the same challenges this year as it did in 2007, with the network’s expansion being dependent on the real estate and labour markets. “We estimate the labour market will register a similar development to the one seen in 2007. Competition on the labour market will increase, and it will be harder for companies to find personnel, particularly skilled personnel,” adds Kaufland’s manager. In terms of network expansion, Kaufland faces high land prices and the shortage of available land in targeted areas.