Agricola Bacau to invest EUR 3 million in expanding its own retail network

Newsroom 25/10/2011 | 15:31

Romanian meat producer Agricola Bacau has announced plans to expand its private stores network to 170 units by the end of 2013, following a total investment of approximately EUR 3 million.

At the end of 2010, the Agricola Bacau group of companies had 43 stores and a total of about 22 new units will be added this year. In the capital, the producer has 10 stores and intends to boost the number to approximately 40 units.

In addition to opening new stores, the existing ones will be redesigned according to a new concept put together by French company Ideasie. The average investment in the redesign of an Agricola store is EUR 15,000, not including the refrigeration equipment.

“Expanding our own store network is a strategic objective that enables us to meet our development targets. It is a cash source but also an important image booster (…),” said Grigore Horoi, president of Agricola Bacau.

The stores also enable Agricola Bacau to sell its entire product portfolio – poultry and other meat products, pre-cooked and ready-meal products, eggs and fresh dairy products. In addition to this, about 10 to 20 percent of the merchandise in the stores comes from other producers.

The Agricola Bacau group of companies has budgeted a turnover of up to RON 440 million for the current year, which is 7 percent higher than the previous year. Thus, for poultry it estimates a 15 percent hike, 10 percent for pre-cooked and ready-meal products, another 10 percent for dry salami and boiled and smoked products and flat figures for eggs.

Click here to read an interview with Grigore Horoi, president of Agricola Bacau.