What expansion strategy did local players adopt in the first nine months of 2008?

Metro re-launches cash & carry expansion and continues real,-Hypermarket network extension

After 3 years of focusing only on enforcing and developing own stores, German-based Metro decided to continue network expansion as of 2008. The expansion process will begin in the final quarter of the year, when the 24th unit of the retail operator will be opened in Deva, investment which will amount to 15-20 million euros.

“We considered that now is the time to continue our expansion process in other cities of the country, by opening the new Metro Cash & Carry unit in Deva, until late 2008. The high economic and commercial growth potential of the area included in Deva-Hunedoara-Simeria region was a vital argument in choosing the new location,” said Francois Oliver, managing director at Metro Cash&Carry Romania.

Real,-Hypermarket division of Metro has continued expansion on domestic market by opening two more branches in Bucharest and Buzau in the first nine months this year.

The new Real store in Bucharest is located in Berceni area and covers nearly 14,000 sqm, 7,320sqm being assigned to the commercial space. The store will work full-time and will provide 600 parking lots compound.
Real has opened recently in Bacau the 16 unit within the chain developed in Romania, after 18 million euros investment. The new s store covers 11.700 sqm, 6,100 sqm being assigned to the commercial space and provides 1,250 parking lots.

Carrefour: 6 hypermarkets and 17 supermarkets

In first three quarters of this year, the French retailer adopted a dynamic development policy for the chain: with the 6 new supermarkets opened in 2008, Carrefour reaches a 17 units network in Romania, equivalent to the number of Carrefour Express supermarkets that the company rebranded this year.

If in the first half of the year, the French operator opened 4 new supermarkets in Suceava, Arad, Pitesti and within Vivantis Retail Park in Bucharest, in third quarter Carrefour continued its expansion by opening two new locations: Carrefour Focsani, opened within European Retail Park and within Era Shopping Park in Iasi, both requiring 20,000 euros investment.

Moreover, Carrefour plans to rebrand all the 21 Artima units acquired last year’s fall from Enterprise Investors by late this year. Until now, the operator opened 17 supermarkets, following to open four more by the end of this year.
Carrefour, French-based retailer registered in first half 2008 508 million euros sales volume in Romania, up 40.3% compared to similar period of last year.

Rewe opened 5 new units: 2 Billa, 2 Penny Market and 1 Selgros

Billa Romania, division of German retail group Rewe has continued its expansion this year. After opening 2 supermarkets in Bacau and Slatina in June, Billa reached 30 operational units in Romania.

Billa plans to expand store chain by another ten units this year, and to operate 50 units nationwide until 2010.
German-based Rewe has continued expansion of Penny Market chain, by opening two more stores. Thus, the network reached 52 stores, 46 Penny Market units and 6 Penny Market XXL.

Rewe’s third division, Selgros, has continued expansion as well, with a new opening in Braila. Thus, Selgros network already accounts for 17 stores.

Plus Discount, 15 new units

After ending last year with 48 units, Plus Discount network, division of German retailer Tengelmann, already holds a 63 store chain in Romania.

The German retailer announced it will adopt an expansion plan of approximately 25-30 new units annually, to reach 175-200 stores in Romania by 2010.

Plus targets cities with more than 15,000 inhabitants; the costs of a new unit amounting to approximately 2 million euros.

Spar, three new units, up to 17 stores

Although they plan on opening no less than 12 new locations this year, in first nine months of 2009, Dutch-based Spar have opened only three new units in Constanta, Chisineu-Cris and Ineu. At this point, Spar holds 17 units chain.

Medium-term development objective consists in opening 55 stores, including in Bucharest, the final target being 250 units chain nationwide.

Supermarkets are operated by Spar Company with head office in Arad, the Romanian franchiser of the group. The Romanian company, part of Astral Impex Arad aims at expanding the franchise through other partners in the country.

Translated and adapted by Camelia Oancea.

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