The German discount store network Plus will invest over 55 million euros this year, opening 30 new outlets and to boosting its storage capacity.
According to the companyes plans, the network will comprise of 64 outlets by the end of the year, with investments of approximately 1.5 million euros in each new outlet.
"We will expand the storage area in our logistic centre, based in Ploiesti, by some 12,000 square metres, so as to assure the logistic capacities necessary for the new outlets. The investment in logistics will amount to 10-13 million euros, it will start this spring and it will be completed by autumn," said Ioana Marginean, marketing manager with Plus Discount Romania.
The company also plans to build a second logistic centre in Cluj-Napoca, an investment scheduled for next year. Plus Discount intends to expand its network to over 170 outlets by 2010 and this year attracted a loan worth 80 million euros from EIB (the European Investment Bank) to partially finance the development plans. "We chose this aggressive expansion strategy because we wanted to reach nationwide coverage in the shortest time possible, as modern retail is still developing in most of the small and medium-sized towns in Romania," said Ioana Marginean.
The representatives of Plus Discount say the obstacles they come across, during the expansion process, are the legal ambiguities they face when they purchase the plots for development and the shortage of qualified and experienced personnel on the labour market.
"When we recruited personnel for the new outlets, we hired a great deal of people with no experience in our field of retail, therefore all new employees of Plus Discount, undergo a two-month period of intensive training before the opening of the outlet," Marginean stated.
According to the network officials, the company owns 60% of the plots on which the Plus Discount stores are built.
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