EUR 10 million will be invested in the Profi discount stores has announced Enterprise Investors, the Polish private equity company that bought the retail network last year from Duna Waiting Participation for EUR 66 million. The money will go into opening new stores and the acquisition of “smaller supermarket chains in the country”, according to the company.
By the end of this year, six new Profi stores will be opened and at least 25 new units will be added in 2012. Currently there are 101 Profi stores in 67 Romanian cities.
“In addition to the development of new stores in the existing format and restructuring the existing ones, the company plans to implement a new 300-500 sqm store concept in towns with below 20,000 inhabitants. The total investment of PEF VI (e.n. a private equity fund managed by Enterprise Investors and which fully owns Profi) may rise to EUR 100 million in the coming years,” said company representatives. Since the takeover, about EUR 20 million has been invested in new stores as well as in redesigning and restructuring of existing ones.
According to the company, Profi has enjoyed steady growth since the buyout. In 2010 sales reached RON 725 million (over EUR 180 million), 21 percent more compared to the previous year.
“Despite the current difficult conditions on Romania’s retail market, which contracted by 6 percent in the first 6 months of 2011 year-on-year, Profi’s sales expanded by 35 percent in the same period,” said company representatives.