German retailer Penny inks EUR 3 bln, 10-year investment plan for Romania
<p>German discount store chain Penny plans to reach a network of 1,000 stores in Romania by 2035, from 417 currently, and earmarked a budget of EUR 3 billion for local development, according to the company's CEO Daniel Gross, quoted by&nbsp;<a href="https://revistaprogresiv.ro/stiri/retail/planul-pe-zece-ani-pentru-penny-romania-3-mld-euro-investitii-si-1-000-de-magazine/?mc_cid=57d8d9b074&amp;mc_eid=cd1f92f96c" rel="noopener" target="_blank">Revista Progresiv</a>.</p>

<p>"In our first analysis for Romania, which we did in 2003, we found a local potential for 200 stores. A decade later, in 2014, we set a 400-store target for &nbsp;2025, which we met in advance. Now, we see room for 1,000 locations," Daniel Gross said.</p>

<p>Last year, the retailer invested EUR 177 million locally in expanding and modernizing its network, the largest budget to date for the local subsidiary.</p>

<p>COO Penny Romania, Daniel Crișan, highlighted the investments made in the area of ​​sustainability, with EUR 30 million allocated last year for the Guarantee-Return System. All stores to be launched this year will be equipped with packaging recycling facilities.</p>

<p>The German discount store chain closed last year with a turnover of RON 9.4 billion (EUR 1.9 billion in Romania), 13.5% up y/y 2023, according to&nbsp;<a href="https://www.zf.ro/companii/retail-agrobusiness/cel-ambitios-plan-expansiune-retailerul-penny-vrea-ajunga-1-000-22770696?mc_cid=57d8d9b074&amp;mc_eid=cd1f92f96c" rel="noopener" target="_blank">Ziarul Financiar</a>, quoting data provided by the company.</p>

<p>The Romanian subsidiary posted for the tenth consecutive year the highest growth rate among all the group's retail subsidiaries, said Daniel Gross. The growth was driven in equal shares by the expansion of the chain (more stores) and rising traffic per store, he explained. The higher turnover was achieved despite the 0.8% average decrease in the prices for the goods sold by the group, in contrast to the country-wide inflation he furthered.</p>

<p>The company's CEO explained that the customers are cautious in their purchases and are interested in promotions and private labels.</p>

<p>Penny has been active in Romania since 2005, when the first units were opened. It is part of the Rewe group, which has other retail brands and is also active in the tourism industry.</p>

<p><em>iulian@romania-insider.com</em></p>

<p><em>(Photo source: <a href="https://www.dreamstime.com/">Emilio100/Dreasmtime.com</a>)</em></p>