Eugen Zbircea, manager of Provera, the procurement centre for Cora, Profi and Albinuta stores, says the company's turnover could reach 313m euros this year, with part of the increase triggered by rising food prices.
"We haven't witnessed a dramatic drop in sales volumes in the wake of price hikes for basic food items, but I expect to feel the effects in the long run," states Eugen Zbircea.
Provera Romania, set up in 2005, is the consumer goods procurement centre of Louis Delhaize group domestically. The company operates three Cora hypermarkets and the Profi discount network, which last year took over Albinuta stores in Bucharest.
For Romanian market operations, Provera buys around 60,000 products, and Zbircea says he pursues collaboration only with domestic suppliers.
"Our main interest is to work with domestic suppliers because this way we can respond faster to new things than if we than if we bring products over long distances," says the manager.
At present, the company's private labels account for less than 10% in the sales over the three-store network owned by Louis Delhaize. Winny, one of the best-selling private labels of food retailers is developed by Provera in partnership with Romanian producers.
Last year, Profi generated turnover worth around 110m euros, also including the sales of Albinuta network. Cora has not released 2007 financial results, but in 2006 the company's turnover reached 300m euros.
Last year, Provera derived 1bn RON (300m euros) turnover, according to the data supplied by Zbircea. The growth rate of Provera's turnover this year, compared with 2007, put by the manager at 16%, also includes the shelf price increase generated by producers' rising costs.
With regard to Romanian producers, Zbircea believes they need some warning to boost their productivity.
He adds that he has noticed Romanian small farmers are reluctant to the idea of setting up collective farms. "On the other hand, I noticed Romanian producers are permanently seeking novelties to improve their portfolio. Retailers can help them achieve this because they interact with customers through us. We have department managers who get directly involved in the development of several new products made by certain producers," states Zbircea.
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