PENNY Enters Successfully the Bulgarian Market

Köln, 13.11.09

More than 20 stores and investments of over 100 million euros by the end of the year

By the opening of 14 stores in a first step, PENNY has successfully entered the Bulgarian market. The store base of the food discounter will be expanded to more than 20 stores by the end of the year. The investments effected in the first wave of expansion, in whose course up to 700 new jobs will be created, amount to about 100 million euros. PENNY will dedicatedly expand its store base and increase the number of employees over the next years and will position itself as a 'national discounter'. Every second product offered in the discounter's shelves will be directly from Bulgaria. By this, PENNY positions itself also in the latest country it has entered as a local discounter. The other half of the product range will be made up of PENNY private label products and well-known international brand products. The stores will be supplied from an logistic hub with a surface of 28,000 square metres, in which 15 million euros were invested and that is located in Stolnik, near the capital of Sofia. Besides Germany, Austria, Italy, the Czech Republic, Hungary and Romania, the country is the sixth foreign market that has been entered by the food discounter which is part of Cologne-based REWE Group. With more than 3,500 branch stores, about 38,000 employees and a turnover of 9.5 billion euros, PENNY is one of the most successful food discounters in Europe.

"With Bulgaria, PENNY clearly extends its international orientation beyond Romania towards South-Eastern Europe.  This makes the country an important place of strategic importance for expansion. Moreover, we are of the opinion that the country with its more than 7.6 million inhabitants has a great potential for our PENNY sales format. By our market entry, the purchase of goods will become considerably cheaper and easier. Besides, however, we also stand for freshness, service, quality and locally typical products. With our corporate philosophy, we support the development of the local economy. Moreover, this approach shows that PENNY deals with its suppliers, customers and employees in an honest and transparent way, right from the start - this is what we understand of "national" discount", said REWE Group Management Board member Armin Rehberg on the occasion of the PENNY launch in Bulgaria.

"PENNY is a discounter that is oriented internationally. We operate almost 1,150 stores abroad. We will further and dedicatedly continue this course. Doing so has nothing to do with just randomly adding flags to our expansion map -  it is rather about finding countries offering development prospects. By entering Bulgaria, we have established an important hub from which we can further consolidate and expand to Eastern Europe", said Folker Gussek, member of PENNY International's senior management. Even though the current economic situation in these young economies is under pressure, PENNY keeps following its course without changes. "PENNY believes in Eastern Europe", said  Gussek.

"In the years to come, we will systematically expand with our stores throughout the entire countries . In doing so, we will rely above all on a balanced mix of local products, well-known international private label and brand products. With this mix, we offer our customers a unique variety of its own in the discounter trade.  There was a real run of customers on the stores when they opened their doors. The first turnover figures are excellent and clearly show that our concept is on the right course", said Vasil Fecko, Managing Director of PENNY Bulgaria.

PENNY clearly positions itself in the competition with its motto "Nowhere you will buy cheaper than at PENNY", and shows in its market entry advertisement campaign that customers get an entire shopping trolley full of food products for just 15 Lev.

Contact

REWE GROUP-Corporate Communications
Tel.: 0221 - 149-1050
E-Mail: presse(at)rewe-group.com

Contact