Plus, a network of discounter stores, part of the German group Tengelmann, estimates that this kind of store will come to account for more than 40% of the overall Romanian retail market in the coming years.
"In Germany, discounters now have a 40-45% share of the retail market and I am sure Romania will see a similar percentage," stated Uwe Klostermann, general manager of Plus Discount Romania.
The Germans'' medium-term investment plans stand at a value of about 200 million euros.
The Plus network will be officially launched this week, but during the past month the German group opened 10 stores under the Plus brand in Bucharest, Targoviste, Deva, Bistrita, Bacau, Sibiu, Orastie and Gherla, with the official motivation being the testing of supply and data transmission systems.
"What makes us different from other retailers (supermarkets i.e.) is the fact that we acquire large quantities from suppliers, which we stock in our logistics centre in Ploiesti. The goods deposited in warehouses are then transferred to the stores. Thus, we are saving on both the supply side and also on the logistics side," explained Klostermann, who estimates that Plus Romania will turn a profit after the third or fourth year of operations.
The logistic centre in Ploiesti required investments of more than 15 million euros, has an area of 28,000 square metres and can supply 60 Plus stores across the country.
"Our target is to establish 120-150 stores located in cities with over 30,000 inhabitants and to build a second logistic centre in Transylvania by 2008," said Klostermann. He explained that for transportation, Plus will be using the services of a German carrier it works with throughout Europe, and will be working with logistic broker Macromex for the distribution of fresh products. Unlike other retail chains that have entered the Romanian market, Plus Discount has chosen to carry out a large promotion campaign, especially through television. "We have chosen to promote our image through TV ads because our stores are located in many cities around the country, not only in the capital city," Plus officials say. Plus stores in Romania each cover some 1,500 square metres, boast 80-100 parking places and 20-25 employees.
"In Europe, a Plus store has 10 employees, but in Romania we had to adjust to market demands since the working programme is longer and stores are also open on Sundays," explained Klostermann.
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