La Fourmi supermarket chain concluded last year with sales in excess of $17 million, up more than 25% from 2002. The company will have its own bread factory as of this year, as well as a central warehouse, while its own brands may account for 30% of the sales.
"For the first 11 months of last year, the seven stores that were also operating in the similar period of 2002 saw 15% increase in sales. Moreover, we had three more stores operational in the last month of the year compared to 2002. The first store was opened in the Pipera area in December 2002, the second - in Rahova in November 2003 and the third - towards late December 2003. Under the circumstances, sales for the entire 2003 may increase by 27% - 30% from the previous year," Riad Hijal, general manager of La Fourmi, said.
According to Hijal, sales may increase even more this year, given that La Fourmi took over 5 supermarkets from the Concordia company and is in talks to buy another 4 - 5 stores.
"We want to control 25 stores by the end of 2006, all of which based in Bucharest. Buying the already existing chains and developing new stores is the main way to expand. We are also considering to franchise several stores," Hijal added.
After the company bought a 6,000 sqm plot near the Bucharest Chamber of Commerce, it rented another 5,000 sqm plot in the Voluntari area as of this year. "The space we bought last year is used for offices, but this (the space in Voluntari) will be used for a new bread factory and a central butchery. Besides, we decided to develop the catering and the packing of the directly imported fruit and vegetables, with these operations conducted on the same location," Hijal added.
Under the circumstances, the network's own brands, along with the direct imports contracted by La Fourmi, may come to account for 30% of the chain's turnover on medium term. "We find it natural to develop this category of products, which you can find only in the La Fourmi stores. This is how it goes everywhere in the world as the supermarket chains attempt to be different from competitors and we plan to do the same," La Fourmi official explained.
The space rented in the Voluntari area is used to build a central warehouse to optimise the logistic costs. "The central warehouse will handle the distribution for all the stores, from which the orders for the suppliers will also be issued. We are consequently trying to avoid overstocking, which is a very significant element for every chain," Hijal also said. ionut.bonoiu@zf.ro
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