Patriciu opens first Macro store, says Romania is not yet out of recession

Mercadia Holland BV, controlled by local businessman Dinu Patriciu, has opened the first Macro store in Brasov by rebranding one of the company’s local MiniMax units. The process required an investment of EUR 500,000. Mercadia plans to rebrand all of its other 55 MiniMax stores countrywide under the newly launched Macro concept and to open new ones, bringing the network to about 100 units by the end of this year.

Simona Bazavan

Mercadia Holland BV has invested so far EUR 76 million but this will have to increase to about EUR 250 until the business will reach maturity, according to Patriciu. The company’s targets for this year are to increase its network to 1,300 Mic.ro stores from 507 presently – the Mic.ro grocery concept was launched in October 2010 – 1,000 mobile Mic.ro stores and 100 Macro units.

Present at the opening event, Patriciu told a press conference that he is only an investor in Mercadia Holland BV. “I am only an investor. I am not behind but in front of this business. I am putting my reputation, my name and my professional self-pride at stake for this business which is important not only for the company  but for the Romanian community also,” he said.  He added that Mercadia will become one of the most important interests of DP Holding in Romania in the following years. Presently DP Holding, which comprises all of the businessman’s local companies, has an exposure of over EUR 600 million on the local market. “I am not running away with the money to sunny destinations. I am investing in Romania where I have earned it,” the businessman said.

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Romania not yet out of recession

While recent statistics show that Romania is, technically, out of recession, Patriciu believes that this is not the case as it doesn’t translate in a recovery of the purchasing power.

“Retail consumption has decreased by 9 percent  in Q1 2010 against the same period of 2011,” he explained. He went on saying that in his opinion consumption will not pick up in one year’s time.

‘Private labels are a crotchet invented by Western retailers in order to take money out of people’s pockets ’

“As for labeling Macro – whether it is supermarket, a hypermarket or a discount store – it isn’t any of these,” Patriciu said, adding that the concept targets the entire community, both people with higher income and those looking for discounts. He explained that Mic.ro and Macro are meant to be an integrated concept. “Actually I don’t call them stores at all. For me Mic.ro are groceries while Macro are markets,” he said.  As for private labels, the businessman said the concept is a crotchet invented by Western retailers. “We are not basing our strategy on developing private labels as a way to fool customers.”

Retail with Romanian flavor

The first Macro store has a surface of 960 sqm and offers 4,000 products. It also includes an exterior market with 52 stalls where local producers can sell their merchandise.

Patriciu says that what will mainly differentiate Macro from competitors will be its focus on offering made-in-Romania products which should climb to as much as 90 percent of the total product portfolio in the years to come, albeit he admits this will be a challenge. “It involves a huge logistics effort. In a year’s time I would like to be able to say that that we have tens of thousands of local suppliers,” he said.

The Macro logo also comes with a local flavor – the outline of a rooster which hints to the Romanian story of the rooster that had a bag with two coins written by Ion Creanga.

In 2010 Mercadia Holland BV posted a turnover of around EUR 100 million but Patriciu says it will climb to about EUR 400 – 500 million this year. The company employs 5,500 people with the number expected to almost double by the end of 2011.

Mercadia Holland BV acquired the MiniMax discount chain in 2010.