“In the light of world economic events, the Board has completed a review of the ongoing prospects for each of the Group's markets. The focus of this review has been to reduce or eliminate our commitment to markets where the potential for coffeeheaven has been reduced and to improve profitability by closing stores where changed market conditions have made near- term profitability for individual units unlikely,” reads the press release.
As a result of this review, the Coffeeheaven decided to withdraw operations from Romania and Slovakia, which will result in the disposal of three stores, one of them in Romania. The company will exit the market by the end of March 2009. Disappointing results have been reported for the Czech market, where the company anticipates a reduction of the number of stores.
The group has made this decision in an effort to cut the development expenses and to enhance the profit margins.
The first Coffeeheaven in Romania was opened this spring within Baneasa Shopping City. Worldwide, the group operated 90 units in September, in Poland, Latvia, Czech, Bulgaria, Hungary and Romania.
Translated by Camelia Oancea
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