Germany's Metro group, the biggest player in Romanian trade, yesterday completed the project to remodel the older stores in the cash & carry network, which it had started back in 2006 and reached total investments worth around 36m euros in eight stores.
The network's representatives specified that this year's target would be related to business consolidation. In exchange, Metro will invest to expand the Real Hypermarket network domestically to secure a better coverage on this segment and keep up with its direct rivals, Carrefour and Auchan.
"Expansion is not our priority as we already have a very good coverage: 24 cash & carry stores per 23 million inhabitants, while the network's average internationally is for one store per one million inhabitants," stated Francois Oliver, general manager of Metro Cash & Carry Romania & Moldova.
The company last year opened a store in Deva, after three years during which it had no expansion project.
The investments Metro Romania operated in its cash & carry network last year can be put at 25m euros. The company started operating in Romania in 1996.
Oliver specified the network was not contemplating any further extensive remodelling in the following period, but certain refurbishing moves will be made in some stores.
"2009 will be the year when we adjust to the new market conditions. There will be budget adjustments. I believe that, in the case of traditional stores the ones that will adapt and act professionally will hold out on the market," Oliver also said.
Retail players expect 2009 to be a difficult year, with growth rates below those of the past years in the food sector and with sales declines on the market segments touched by the lending restrictions.
"We've noticed non-food retail is experiencing a decline as people prefer saving instead of buying white goods. Non-food and mixed stores, particularly those in rural areas, are hurt by the current market conditions, but they are but small part of our reseller customer portfolio," stated Vladimir Vava, chief operating officer of Metro Cash & Carry Romania & Moldova.
The network reported 1.59bn-euro turnover in 2007, up 11.3% year-on-year, and 2008 sales by Metro group in Romania can be put at 2.3bn euros.
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