French group Cora expects its turnover to reach 150 million euros this year, but will continue to make losses on its activity in Romania. Cora opened its first hypermarket in Bucharest in 2003.
"The first store had over 20 million visitors and a turnover of more than 100 million euros last year. The annual growth pace for sales is 30%," said Philippe Lejeune, the Cora general manager responsible for Central and East European countries.
Turnover will reach 150m euros, says Lejeune, following the opening this autumn of the second Cora store in Bucharest on the site of the former Miorita milk factory in the Lujerului area. Investment in the store will total 40 million euros. The French will also begin building a third store in Cluj in a 25 million-euro investment scheduled for opening next year.
Even with the two new stores, Cora will still not be making a profit from its activity in Romania, with the first profits set to emerge as late as "four to five years" from now.
The 115 million-euro investment in the three stores in Bucharest and Cluj will be increased, says Lejeune, depending on the development of the Romanian market and the sites that are found.
"We are interested in building another store in Bucharest (the company bought land some years ago in the south of the city), and if the demand is there we''ll open new stores.
"In principle, we plan to open at least one store a year."
Cora is part of the French group Louis Delhaize, which also owns the Profi discount chain in Romania. Early July saw the French company set up Provera Romania, which will act as a joint acquisitions centre for both operators. According to Franck Johner, manager of Provera Romania, the acquisitions centre is intended to improve the product acquisition process, which will translate into better prices for end customers.
He added that the following months will see the two operators in Romania launch a "lowest price" brand category, similar to those offered by Carrefour ("No.1"), Metro ("Aro") and Billa ("Clever").
Besides Cora, the Romanian market is also host to the hypermarket network of another French group, Carrefour Romania.
Carrefour currently has four stores in Bucharest and Brasov, and this year will open a new store in Ploiesti and begin construction of a further two to three stores.
Carrefour''s four stores had a combined turnover in excess of 220 million euros, twice the level of 2003, when it had only two stores. ionut.bonoiu@zf.ro
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