International retailers have set their eyes small local supermarket chains, in their pursuit of the best locations for expansion. Seven stores from the country have been already taken over this year, but the acquisitions will not stop here, say the international supermarket operators.
The Artima chain purchased this month an Avantaj supermarket in Ramnicu Valcea, owned by the shareholders of bakery producer Boromir, after the company had taken over Lotus Supermarket in Oradea, this March.
"We sold the store because the price was advantageous for us. I'm not giving up the Avantaj store chain and I have already found a location to open another store, with part of the money. Another amount of money will be invested in the group's bakery and milling product factories," says Constantin Boromiz, shareholder at Boromir.
The Avantaj store, taken over by Artima, has an area of 1,000 square metres, while the Lotus supermarket, which was added to the chain this March, is currently its largest outlet, with its 2,000 square metres.
But what prompts the international supermarket operators to purchase stores instead of plots of land?
The lack of available plots of land in the targeted cities, as well as the high land prices are challenges faced not only by supermarket operators when expanding on the local market, but also by hypermarket chains or DIY stores. Vlad Pacea, marketing manager of Mr. Bricolage chain, which will open its first outlet in Romania at the end of the month, says the price of plots is very high, especially in the central and semi-central areas, which are eyed by the company.
Rino Tizzanini, general manager of Dutch group Spar, believes the main advantage of purchasing the already existing stores is the good location for a prosperous business.
Moreover, along with the local stores, the international retailer takes over their clients as well, to which it can add new customers.
Spar will enter the market of Alba-Iulia by taking over the Diskont supermarket chain, currently controlled by Nicolae Oancea.
Diskont stores generated sales worth some 6.5 million euros last year, double against the previous period, and a gross profit worth 22,000 euros.
"We do not reject the option of continuing the stores' acquisition to expand the Spar chain. The three stores in Alba-Iulia (e.g. taken over from Diskont) will be opened, after rearrangement, by the end of the year, as will the stores we built in Targu Mures and Odorhei," Rino Tizzanini specified.
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