Discount store network Penny Market, a part of the German retail group Rewe, will resume its network expansion of Penny Market XXL, after, over the last two years, expansion relied on smaller store formats, with a sales surface of around 750 square metres.
The network has recently opened its sixth Penny Market XXL store in Brasov, the first store located within a shopping centre (the Unirea Shopping Center). The store has a sales area of 1,800 square metres, and entailed investments worth 500,000 euros.
"On the first day, the number of shoppers in Brasov's new store exceeded 6,000. In 2008, we plan to open another Penny Market XXL store," said officials of Penny Market Romania.
The company reported gross turnover (VAT included) worth 253.7 million euros for 2007, up almost 40% against 2006. At the end of the year, the network numbered 50 units on the local market, 5 of which were Penny Market XXL stores.
Last year, the discount store doubled its expansion rate in Romania from 10 new stores in 2006, to 20 in 2007. According to Rewe data, expansion-related investments revolved around 43 million euros last year. In 2008, the company plans to expand its network and open 20-25 Penny Market stores, as well as two larger-size (Penny Market XXL) stores. According to ZF estimates, investments in network expansion could exceed 40 million euros this year.
German-based Rewe, the second largest player on the Romanian FMCG market, also holds the Billa (supermarket) network and the Selgros (cash & carry) network.
Last year, Rewe posted sales worth 1.45 billion euros on the Romanian market, up 38% against 2006. At the end of last year, its three local divisions totalled 94 stores, a figure that includes 16 Selgros units and 28 Billa supermarkets.
Discount store network Penny Market, a part of the German retail group Rewe, will resume its net
