Alexandros Tsintzilonis, managing director with the La Fourmi network, says Global Finance Greek investment fund will triple the number of supermarkets taken over in 2005 from the founders of La Fourmi in the next two years.
La Fourmi plans to expand its network in Bucharest to 35 outlets by the end of next year, from 11 at present. Beside these, La Fourmi network includes 3 The Best outlets it took over last October.
The company could acquire other supermarket chains in the capital city in order to prop up its strong expansion pace.
“Both the opening of new stores and the takeover of some already existing networks are difficult processes: new locations are hard to find and the price of rents is rising each day; on the other hand, finding takeover targets meeting our criteria related to area and location is also difficult. However, there are enough supermarkets in the capital city that are potential takeover targets,” explains Alexandros Tsintzilonis. La Fourmi last year derived turnover worth some 25 million euros, with 3 million euros being generated by sales registered by The Best stores. According to the company, The Best outlets will undergo a rebranding process this year.
With the new shareholders that joined the business in 2005, La Fourmi last year posted an increase by over 37% in sales generated by the 11 stores of the network.
“In the first month of this year, sales advanced by 50% against the same period of 2006 (not including The Best stores), as changes brought by Global Finance became visible,” states Tsintzilonis.
In the autumn of 2005, a stake of 80% was sold to an investment fund managed by Global Finance Greek company. The first changes operated by the new shareholders targeted the company’s top management. Another strategic change was stepping up the expansion pace, with the company planning to open more than 20 outlets by 2009.
The average investment in the opening of a 400 square metre La Fourmi outlet revolves around 250,000 euros, according to company data. The value of investments per supermarket could increase if La Fourmi bought an already existing supermarket chain.
La Fourmi also intends to refurbish the 14 outlets it owns through investments revolving around 1.5 million euros by yearend. Most La Fourmi outlets are in rented locations, only two of them being owned by the company.
La Fourmi network will bank on fresh products to stand out from the rest of supermarket chains operating in Bucharest. “We’ve chosen fresh products as the element meant to differentiate us from our rivals. After outlet refurbishment, we want sales of fresh products to account for 40% in turnover,” states Tsintzilonis.
La Fourmi is the first supermarket network of Bucharest, being developed by Lebanese investors starting 1993.
La Fourmi
The first supermarket chain of Bucharest, developed by Lebanese investors starting 1993
In the autumn of 2005, an 80% stake in the company was sold to an investment fund managed by Global Finance of Greece
Plans to expand its network of Bucharest to 35 stores by the end of next year, from 11 at present
In the first month of this year saw sales advance by 50% against the same period of last year owing to changes brought by Global Finance