German retailer Kaufland announced its plans to expand to the Republic of Moldova, the Romanian branch being responsible for the coordination of commercial activities there. The first store is projected to open in 2018.
“At the end of 2015, we started to expand the network of shops and we will be present in the Republic of Moldova. First, the development strategy includes opening of six stores in Chisinau, the capital city, having over 700,000 inhabitants, the economic and cultural center of the country. (…) Due to geographical proximity and historical and cultural links, the commercial activities will be coordinated directly by the subsidiary in Romania,” shows a company statement.
Kaufland posted a RON 7.99 billion (EUR 1.8 billion) turnover in 2014, being on an ascending path for the past years. Profits reached RON 409.73 million, also rising over previous years (RON 331.02 million profits in 2013). In 2014 the company reduced its employee number to 12,180 from 12,589 in 2013. In November 2015 the company announced a move to reduce its share capital in Romania by EUR 25 million, in the context of a local expansion slowdown.
Kaufland is part of the German group Schwartz, also present in Romania through its discount network Lidl, and has a local network of 107 stores. In Europe, it has some 1,300 units across seven countries: Germany, the Czech Republic, Poland, Croatia, Slovakia, Bulgaria and Romania.