Caius Crisan, the general manager of Profi discount store network, says the company's strategy targets national network coverage, with further store takeovers being considered.
Several months after it entered the Bucharest market by taking over the Albinuta network, Profi plans to invest in logistics to support its nationwide expansion.
"By the end of next year, construction works for a warehouse near Cluj, which will supply Transylvanian stores, will be finalised. Another warehouse will be required in the south to cover the area of Moldova," says Caius Crisan.
The manager estimates investments in the Cluj warehouse, located on a 6- hectare plot of land, will be between 7 and 8m euros. At present, the company uses a rented warehouse in Cluj.
Profi, owned by Louis Delhaize French group, which also operates Cora hypermarkets, was the first discount store operator to arrive on the Romanian market, in 2000. The first stores were located in the west of the country, after which the network expanded to Transylvania and reached 26 stores in late 2006. This year, the company made its first step onto the Moldovan market and opened a store in Onesti. Profi also took over Albinuta's 9-supermarket network and entered the Bucharest market through investments estimated to be worth 10m euros.
The acquisition of a network was Profi's only option in terms of tapping into Bucharest's retail market.
"We've also been looking at other domestic networks and will continue our policy of taking over existing networks, not just in Bucharest. I believe all domestic chains will belong to some international players in three year's time," adds Crisan.
The company plans to open a Profi store in Bucharest to test the market with its own brand.
Sales of Profi Rom Food, the operator of the Profi and Albinuta stores, is expected to exceed 100m euros this year; almost double the value registered in 2006. By yearend, Profi Rom Food will operate over 45 stores. Crisan believes the growth of the company's turnover is not only because of network expansion, but also due to the fact that older network stores generated over 20% higher sales in the first 7 months of the year against the same period in 2006.
Overall, the number of domestic discount stores is expected to double this year.
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