Supermarket network Mega Image, which mainly operates on the Bucharest market, has posted 70.8 million euros in turnover last year, an increase of 14% on 2005, according to information supplied by the company.
Mega Image reported losses of nearly 2 million euros (7 million RON) in 2006, against losses of approximately 0.3 million euros in 2005. "The losses were mainly caused by provisions created for less trustworthy (partner) suppliers, money which we intend to recoup this year," said the representatives of Mega Image Romania.
The Mega Image network, which consists of 19 supermarkets, have said they plan to expand to a total of 24 stores by the end of the year through investments worth around 1 million euros for each newly opened store. So far, the cities targeted for new stores are Bucharest, Ploiesti and Constanta, with the network announcing it would remain focussed on the Capital market for the next 1 or 2 years.
Mega Image opened two new supermarkets last year, one in Bucharest (located in the Pipera area) and the other in Constanta. The company started the refurbishment of older stores last year and plans to modernise 6 or 7 stores by the end this year.
The retailer also plans to build a warehouse located near Bucharest, within the next 2 years, which could sustain its network's expansion outside the capital.
Mega Image increased its share capital by 5.6 million euros at the end of last year to around 13 million euros, with contributions from its sole associate the Delhaize group.
The Delhaize group operates two store formats on the local market - Mega Image supermarkets, with an approximately 1,000 square-metre surface area, and a smaller format of supermarket, Mega Image City, with an up to 600sqm sales surface area.
Fresh products accounted for around 40-50% of the network's annual sales at the beginning of last year, according to company estimates. Mega Image was one of the first supermarket networks to appear in Romania, after originally being developed at the beginning of the '90s by Greek investors.
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