Retailer Billa Romania, a subsidiary of German Rewe, is planning to expand its supermarket chain by eight to 10 outlets in 2007. The company's ceo Wolfgang Janisch said it will invest an average of EUR 5 mln in each supermarket, and plans to open new outlets in cities including Medias and Reghin, in the northwest of Romania, and Giurgiu, in the south, in order to increase its network in the country by 30 units before the end of the year.
Retailer Billa Romania, a subsidiary of German Rewe, is planning to expand its supermarket chain by eight to 10 outlets in 2007. The company's ceo Wolfgang Janisch said it will invest an average of EUR 5 mln in each supermarket, and plans to open new outlets in cities including Medias and Reghin, in the northwest of Romania, and Giurgiu, in the south, in order to increase its network in the country by 30 units before the end of the year.
The company, the first international retail network to enter the regional market in early 1999, is poised to invest about five times what it ploughed in the country last year, when it invested some EUR 22 mln on four supermarkets developments.
'The speeding up of the networks growth pace is in line with our implanting strategy on the domestic market: in the beginning, we tested the market by opening 1-2 outlets per year, then we decided to expand faster and we took into account the increase in the consumers incomes,' said Billa Romania's general manager Wolfgand Janisch.
He also added the expansion pace is related to the growth of the real estate market in the country. 'The prices of the plots in Bucharest amount to EUR 1,800 per m2, which is extremely expensive. As we are a food retailer we operate low margins, thus we cannot afford to pay just any price for a good site,' Janisch stated.
