Delhaize, operator of the Mega Image supermarket chain, is tapping into discount retail, the most dynamic segment of the market this year, through Red Market, a concept to be developed both in small towns and in big cities.
After attempting to buy the Profi chain, the third largest food discount chain in the Romanian market, Delhaize takes a stab at the low-price segment with its own brand, first launched this year on the Belgian market.
"Red Market is positioned between the supermarket and the discount segment, and will be developed both in small towns and in big cities," said Raluca Pavel, marketing manager of the Mega Image chain.
This year the company entered the race to take over Profi discount chain, according to market sources, but the information was not confirmed by representatives of the Belgian retailer. However, Profi shareholders sealed the deal with Enterprise Investors, manager of Polish Enterprise Fund VI, which offered 66 million euros for taking over the 66-store chain.
The first Red Market store on the Romanian market covers 1,200 square metres and has 4,000 listed articles, including Delhaize private labels, being located in the Green City residential district in 1 Decembrie commune near Bucharest. Mega Image representatives did not reveal the value of the investment, but it can be put at around one million euros.
Discount chain Plus also relies on a strategy of expanding into new residential districts, with the retailer already having four such stores.
On the Romanian market, the discount store segment could amount to nearly one billion euros this year, considering that the big chains continued their expansion by opening at least the same number of stores as in 2008. In addition, most discount store operators reported organic sales rises (in stores older than a year) in the first six months of 2009 compared with
