MiniMax Discount retailer plans to develop a 100-outlet network over the following 5-7 years by expanding at a faster than before rate.
"We plan to open over 100 outlets over a period of 5-7 years," stated Rainer Exel, general manager of the MiniMax Discount network.
MiniMax currently owns five discount stores and last year announced the opening of a further 20 stores this year, thus stepping up its pace of expansion.
The opening of a MiniMax store, with a retail area of around 1,000 square metres, involves average investments of 750,000 euros, the company says. For its future store openings, the network targets cities with more than 20,000 inhabitants, such as Rasnov, Turnu Magurele, Petrosani, as well as major cities including Brasov and Buzau.
The central warehouse of the company is in Bucharest and has an area of 16,000 square metres.
This is part of Mercury Logistic Park and was developed to serve the southern unit of the MiniMax Discount network that is going to include 30 stores in the proposed first stage. Beside the central warehouse in the north-western part of the capital city, MiniMax Discount is going to open another warehouse in the future, most likely in the northern region of the country, in a bid to secure the company's expansion in this area, as well.
"On the Romanian market, a family's monthly expenditures are more than 50% related to food products, the biggest rate in Europe at the moment," stated the general manager of MiniMax Discount.
The first three MiniMax Discount stores, opened in 2005, took investments worth around 2.3 million euros, in addition to investments in the central warehouse and in distribution vehicles.
MiniMax Discount in the eight months in business in 2005 generated turnover worth approximately 7 million euros (25.6 million RON), the equivalent of average sales per store of 2.3 million euros.
MiniMax officials estimated the company would step into the black after the opening of its 30th store.
MiniMax network was developed by the former head of XXL Mega Discount network, Rainer Exel, and is Romanian and foreign held.
Discounter stores target medium and small-income consumers and have a retail area of approximately 1,000 square metres and an offer that includes 1,000-2,000 items.
MiniMax opened a store in Hunedoara this week, the first store opened this year, with a unit that has a sales area of 1,000 square metres and displays over 1,200 items.
The company also developed products with its own private label together with Romanian producers.
Discount store networks will total 200 stores by the yearend and will come to hold a 10% market share of consumer goods in retail, according to a survey conducted by MEMRB market research company in 2006.
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