After having invested nearly 200 million euros in the expansion of the Billa, Selgros and XXL Mega Discount chains, German Rewe Group is planning to invest more than 100 million euros over the next five years in order to develop its discount stores.
The number of discount chains on the market could thus increase to at least five as of next year from the current number of two.
“For the XXL Mega Discount retail chain (already operational) and PENNY Market (due to open next year), Rewe is drawing up a plan that will involve the building and opening of a chain of at least 50 stores over the next few years, as well as a central warehouse,” the company announced on its website.
The central warehouse that will service the PENNY Market chain is currently under construction in the Stefanesti area close to Bucharest and is due for completion next spring.
Investment by the German company this year reached 30 million euros.
The PENNY stores will include a 750 square metre commercial area, sell 1,200 items and employ 30 people.
Representatives of REWE Romania chose not to provide further details when contacted by Ziarul Financiar.
Besides the four XXL Mega Discount stores, whose turnover was over 41 million euros last year, there is currently only one other discount network in Romania: Profi. Profi does business in western and central Romania and is mainly owned by the French-Belgian Louis Delhaize Group. Its turnover last year was 21 million euros.
The number of discount stores will increase dramatically next year. PENNY Market will be joined by other chains.
Germany’s Tengelmann announced it would invest 200 million euros in the opening of more than 100 stores under the Plus brand. The stores will be located in every town of more than 40,000 inhabitants, and a logistics centre worth 17 million euros will be built in Ploiesti.
Also scheduled for next year is the entry of the Minimax Discount chain, developed by the former head of the XXL Mega Discount chain Rainer Exel. It will open one hundred stores primarily in small cities in an investment of 75 million euros, company officials say.
Last but not least, rumour on the market has it that one of the largest discount chains in Europe, Lidl, which is owned by the German Lidl & Schwartz Group, is expected to come to Romania in second half of next year or in 2006.
Rewe owns 13 Billa supermarkets in Romania at the moment, as well as seven Selgros cash & carry stores and four XXL Mega Discount stores, with investments thus far reaching 200 million euros. Rewe is in this respect the second largest retail investor in Romania, after another German group, Metro.
ionut.bonoiu@zf.ro