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Penny Market announces a 17 pc turnover rise in Romania

Penny Market announces a 17 pc turnover rise in Romania

Rewe Romania, operating Penny Market retailer, has reported a turnover of almost RON 3 billion last year, 5 per cent more as against 2016, the group’s officials have announced in a press conference in Bucharest on Wednesday. For the Penny Market division, there has been a 17pc rise in 2017 compared to the previous year.

Four top managers of the Rewe Group Romania attended the press conference, also revealing the investment plans for this year and the near future and financial forecast.

Last year, the group has invested over RON 482 in revamping and extending the stores, reaching to 223 stores and three logistics centers (Stefanestii de Jos, Turda and Bacau). “26 new stores have been opened last year, more than in any other country where Rewe group is present. We plan to have 400 stores by 2025, but why not, the forecast can be revised and we might double the number of stores by 2025. (…) Romania has a strategic importance for the group,” said Michael Jager, Executive Board Member Discount International.

The year 2017 has been good for us, while figures are speaking for themselves. We reported a 17 pc rise of the turnover compared to 2016, we have constantly increased and we plan to expand our network by 20-25 stores per year,” said in his turn Daniel Gross, general manager Rewe Romania/Penny Market, adding that the group will invest about EUR 560 M in Romania by 2025, with EUR 80 M this year only in the network expansion.

According to Gross, new stores have been already opened this year in Breaza and Targu Jiu, and another ones will be opened soon in Turda and Mangalia.

He stated that the turnover rise for 2018 is estimated around 12-13%.

As for the staff, Penny Market increased the number of employees last year by 8% compared to 2016, climbing to 4,300.

The Rewe officials underlined that one of their targets, besides investing in the employees and their training (by the vocational schools endorsed in five cities in Romania), is the focus on the local producers. 60% of the products sold across Penny Market stores originate from the domestic suppliers. “We set a high value on the bond with the country of origin and its people. 60% of the products come from the local suppliers , thus contributing to consolidation of the national economy and creating jobs,” said Michael Jager.

Dennis Biernatzki, General Manager Romania for marketing and acquisitions, said that Penny Market works with 70 local suppliers and the retailer has even managed to develop its own brands on meat, dairies, water and even beer. “With our new beer brand Haiduc we are the only retailer in Romania that is providing a 100% Romanian beer produced in the country,” Biernatzki said, adding that this year the group is planning to reach over 70% of local products.

Sales of Romanian products mounted to RON 1.8 billion last year, with the aim of climbing to RON 2.3 bln this year. Biernatzki announced the group also plans to expand the range of personal brands, with a campaign in store to mark Romania’s centenary this year, but further details will be disclosed later on.

Fresh products and hiring will be to the fore in the upcoming period,” said in his turn Oliver Eifler, Sales GM Rewe Romania.

About Alina Grigoras Butu