Auchan, the hypermarket network, wants to double the number ofstores over the next three years to a total of 14, followinginvestments put at 140 million euros, despite consumer spendingdecline.
The takeover of the local network by French group Auchan, a dealconducted at the end of 2008, therefore maintains the growth paceon a market which has seen consumer spending decline by as much as20% this year. In the past three years, when local retail had beengrowing at an annual pace of over 15%, Auchan Romania had openedseven hypermarkets in all, with the company controlled by a groupof foreign investors, most of whom former managers of Cora network,at the time.
"Our goal is to double the number of stores in Romania in threeyears. We don't have other contracts signed for new projects exceptthe one for the Polus Center Constanta mall," said Patrick Espasa,Auchan Romania's general manager.
Auchan is the first player on the hypermarket segment toannounce it will keep expanding at the same pace in the comingyears.
After taking over the local network, Auchan group changed thedevelopment strategy, so that the French will now prefer space theyown to rented space.
"They also told us that their strategy was to become the ownersof the space where they operate, but we are not in the position tosell," said Iulian Dascalu, owner of Iulius Mall shopping centres,where Auchan operates three of its seven stores in Romania - Cluj,Suceava and Timisoara.
The expansion of the network to 7 new locations could takeAuchan Romania's business to more than 700 million euros in 2012,compared with 278 million euros derived from six hypermarkets in2008.
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