Patrick Knight, the new managing director of La Fourmi supermarket network, believes that by taking over stores the company could solve the problems generated by the labour force shortage in retail.
La Fourmi, which operates 14 supermarkets in Bucharest, plans to expand its network through acquisitions and by remodelling its already existing outlets in the wake of investments worth around 4m euros.
"We could easily reach 30-35 stores in Bucharest within the next 3-5 years. The Bucharest market is not crowded; on the contrary, there are many opportunities for international supermarket chains. We expect to see the number of kiosks fall over the coming years, and an increasing number of supermarkets owned by small investors being sold," states Patrick Knight.
The company is now focused on Bucharest, but is likely to start looking outside the capital city next year. In 2006, the company took over three The Best stores in Bucharest. La Fourmi was also one of the companies interested in taking over the Albinuta discount supermarket network this year.
By taking over already existing stores, La Fourmi could solve its recruitment problems on the Bucharest labour market.
La Fourmi's plans entail investments worth around 4m euros aimed at remodelling existing stores by the yearend.
This year, the company will also invest in a store in Piata Unirii, which will remain open throughout its refurbishment.
"Since the Carrefour store opened in Piata Unirii, La Fourmi Unirii has seen its sales shrink, which is normal. However, sales reached the level registered during the period when the Univers'All stores was open," maintains Knight.
He adds the remodelling of the store in central Bucharest targets a greater separation from its competitor, whilst the store's range of products will be adapted to customers from central Bucharest.
La Fourmi Unirii, whose sales area stands at around 1,300 square metres, is currently the network's biggest store.
"(...) There is no competition between large store networks and ourselves: we have the advantage of proximity, they have low prices," explains Knight. He expects turnover to rise by 25-30% in 2007 year-on-year. Sales could therefore top 30 million euros by yearend.
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