French retailer ITM Intermarche, owner of the Interex supermarket network, forecasts sales worth 130 million euros on the local market this year and expects to step into the black.
Phillippe Lavalard, Chairman of the Board of Directors of CDER Interex, and manager of ITM Intermarche operations in the Balkans, says the Interex network will step-up expansion on the local market.
"In the next four years, when we reach 30-40 units locally, we could consider developing the Romanian network via a system similar to the one used in France, i.e. through partnerships with local retailers that are interested in joining a larger group," says Lavalard.
With a restructured management team, the local division of Intermarche group aims to turn a profit and see sales increase by around 37% this year against 2007.
Interex entered the Romanian market in 2002, and currently operates 11 stores locally, after having derived turnover worth 95 million euros in 2007, up over 60% against 2006.
"The most difficult thing for us was to firmly establish ourselves in Romania. The second stage is to develop our business on this market, for which we require the right people," Lavalard says, who took over the management of Balkan operations at the beginning of 2006. He is also a shareholder of CDER Interex and also owns a store in France.
In France, the group numbers 1,200 storeowners and 4,000 stores, which operate in food and non-food retail.
On the Romanian and other Balkan markets, the group operates directly, with the stores being held by the around 1,200 owners, united under Groupement des Mousquetaires.
"The Balkan market is more attractive than the French one in terms of growth potential, but the reverse is true when talking about profitability," Lavalard adds.
Unlike the French market, which has reached maturity and registers 2-3% growth rates, Romania posted an annual growth rate of 15-20% in the FMCG sector.
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