Vlad, Selgros: “Crisis hasn't changed our expansion strategy domestically”

Germany's Selgros, the third largest store network on the market, with sales of around 860m euros in 2008, last year banked on contract renegotiations to keep a lid on prices. What strategies does the operator have on a market due to continue the price war in 2010? Hotel and restaurant owners last year suffered as much as small retailers because of the falling consumption, and the first growth signs are likely to emerge in mid-2010, states Alexandru Vlad, CEO of Selgros Cash & Carry Romania, referring to the two largest client categories of the network he runs. "In 2010 I expect the price war in retail to continue, and low-price items will further generate retailers' turnover this year, as well", Vlad says. Selgros manager states that though abrupt, retail decline was not surprising. Changes in Romanians' consumption habits were the most important, though. "We primarily saw a consumption shift to the low price level. In our case, the number of items sold in the network remained constant," he states, without providing details on sales value in 2009. "The crisis hasn't influenced our domestic expansion strategy. We're still targeting a total number of 21 locations and future projects depend on market conditions," Vlad says.