ZF English

EU integration boosts Carrefour's direct imports by 25%

06.09.2007, 18:56 15

Carrefour Romania hypermarket network is set to create a logistics centre, which, by 2009, will cover almost 5 hectares in the locality of Bucharest. The logistics centre will also house the retailer's direct imports, which rose by 25% after EU integration, a development Carrefour had anticipated as long ago as last year.
The company increased its level of direct imports in the wake of this year's launch of its own clothing label, Tex. Other imported goods witnessing significant sales increases, after the EU integration (due to the elimination of customs duties), could be dairy products, electronics and electrical home appliances. Carrefour owns several regional procurement centres in Europe, from where commodities directly reach the network's domestic warehouses.
The company is likely to invest around 15m euros (according to ZF estimates on the basis of rents) in a 45,000-sqm warehouse facility and 2,000 square metres of office space in Cefin Logistics Park. The space will be taken over in several stages, ending in 2009. "We will look into all the possibilities to increase our national warehousing capacities in line with future expansion," stated Andreea Mihai, marketing manager of Carrefour Romania.
Mihai added that the expansion of logistics capacities was part of the network's strategy for an improvement in its supply of fresh produce through the direct control of fruit and vegetable warehousing. According to statistical data, the takeover of warehouse spaces at Cefin Logistics Park is the biggest rental agreement conducted in its field. Within Cefin, Carrefour will also have access to a 4,000 square metre refrigeration unit for the storage of fresh fruit. Carrefour will continue to outsource part of its logistics services to specialised firms such as Norbert Dentressangle, the retailer's current partner.
If it maintains H1 growth rate, Carrefour Romania could reach domestic sales worth more than 850 million euros by yearend. According to company data, the network's domestic sales increased by 43.8% in H1 against last year, to 361.9 million euros (VAT inclusive).
During this period, Carrefour opened two hypermarkets, in Baneasa and Constanta, and held a total of 7 stores at the end of the first half. In August, Carrefour opened another store (taken over from Univers'All), which brings the current number of hypermarkets to 8.
The company's future expansion plan will take the network to 10 stores this year, with Cluj-Napoca and Iasi as the targeted cities. Carrefour has announced 6 new outlets for next year, with 2008 set to be the most dynamic year for the retailer since it first entered the Romanian market.

Carrefour Romania
By 2009, plans to create an almost 5 hectares logistic centre near Bucharest, to serve the retailer's direct imports, which rose by 25% after EU integration
Is likely to invest around 15m euros (according to ZF estimates on the basis of rents) in a 45,000 sqm warehousing facility and 2,000 square metres of office space in Cefin Logistics Park
Could register domestic sales worth above 850 million euros by yearend if it maintains its H1 growth rate

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