The German Metro Group is planning to increase the total amount invested in Russia within the next five years to approximately $750m. The company’s plans also involve expansion to the Far Eastern Federal District. In addition to the retail projects of Metro Cash & Carry (grocery) and Media Markt (consumer electronics and household appliances) the group may continue its property development projects in the country. With regard to Metro Cash & Carry, the group intends to increase the number of its hypermarkets from the current 69 to 100. At the same time, the Media Markt network is to double its store count to 100 from the current 48.

In the last 10 years of its presence in Russia, the retailer claims to have invested more than $3bn in the country’s market.

As PMR reported earlier this year, Media-Saturn Holding (operates Media Markt) increased its sales in 2012 by 17.8% year on year to €1.03bn ($1.3bn). At the same time, Metro Cash & Carry reported €4.12bn ($5.34bn) in sales, a 20.4% y-o-y growth.

http://www.russiaretail.com/190646/Metro-Group-to-boost-Russian-investments

Hungary

Hungarian cosmetics and household chemicals market up in value, down in volume

Sales of household cosmetics and chemicals amounted to HUF 97bn (€323.4m) during January-April 2013 in Hungary, 1% more than in the same period one year earlier, Nielsen reported. Sales by volume declined by 5% during the aforementioned period. Sales (as measured in value) of toilette paper, fabric softeners, dishwashers, toothpaste and deodorants increased by 2% to 7% on an annual basis in January-April 2013.

Despite a 3 p.p. year-on-year decline to 34%, hypermarkets had the highest market share in the household cosmetics and chemicals retail market in Hungary.

Market share of specialised cosmetic stores expanded by 1 p.p. to 27%, whereas the share of stores with less than 200 m2 retail area remained at the same level as in January-April 2012.

http://www.ceeretail.com/190548/Hungarian-cosmetics-and-household-chemicals-market-up-in-value-down-in-volume

Romania

Dedeman launches a store in Miercurea Ciuc

The Bacau-based DIY retailer Dedeman plans to open on 28 June 2012 a store in Miercurea Ciuc, which will be its the 32nd outlet in Romania. The total investment in this store is estimated by Dedeman’s representatives at some €9m. The store is to have a GLA of 7,500 m² and to employ a staff of 130.

The Dedeman store is to become the first modern DIY shop in Harghita county, where Miercurea Ciuc is located. The lack of interest from DIY retailers in this county has been the result of the low level of completions of dwellings. Last year, only 385 flats were delivered in Harghita county, a drop of 26.5% compared to the previous year.

This is to become the second store launched by Dedeman in Romania since the beginning of 2013 (after opening in Galati). The company wants to launch this year in Romania two or three more outlets, the next opening being scheduled to happen in Pitesti.

Dedeman last year had sales revenues of €541m and net profits of €58m. 

http://www.ceeretail.com/190519/Dedeman-launches-a-store-in-Miercurea-Ciuc

Poland

Similar percentages of citizens in Polish villages and large cities shop online

Out of the whole Polish population older than 15 years, the percentage of e-shoppers is 43%. By contrast, the figure for e-shoppers in medium and large cities and villages is greater than the national average reaching 46%, 45% and 44%, respectively, according to a survey conducted by TNS Polska, a market research firm, marketing-news.pl reported. In turn, only 37% people that live in towns up to 20,000 and 35% residents of towns between 20,000 and 50,000 residents, do shopping on the internet.

About 23% of the respondents indicate that the most important factor for them when choosing the form of payment is that the money will reach the sellers as soon as possible so they could immediately begin execution of the order.

One in ten customers expects that online shops will offer a variety of forms of payment. Still, around 12% decide to pay by cash on delivery. The results of the survey indicate the need for consumer education on safety of online transactions. Only 8% of internet users check on whose account the money will be transferred; only 5% research if a shop has a certificate guaranteeing a safe transaction.

The survey was conducted in March 2013 through the CAPI (computer aided personal interviewing) method on a nationwide, representative sample of 1,014 people aged 15 and older. 

http://www.ceeretail.com/190565/Similar-percentages-of-citizens-in-Polish-villages-and-large-cities-shop-online

Croatia

Croatia's Agrokor buys majority stake in Slovenia's Mercator

Croatia's largest company Agrokor in Ljubljana on Friday signed a contract to buy 53.12 percent of Slovenian retailer Mercator at the price of 240 million euros.

The majority of Mercator’s shareholders, including Nova Ljubljanska Banka d.d., Slovenia’s largest bank, and Pivovarna Lasko Group, signed a contract with Agrokor earlier on Friday to sell the stake at 120 euros per share.

The acquisition is expected to create the largest retail chain in central and eastern Europe, excluding Russia, with annual revenue of up to 7 billion euros. It would also employ about 60,000 people and have about 2,600 stores.

Agrokor has sought to buy Mercator for years to expand into neighboring Slovenia, a European Union member since 2004, and the rest of the Balkans. Croatia will join the bloc on July 1.

http://dalje.com/en-economy/croatias-agrokor-buys-majority-stake-in-slovenias-mercator/472205

Global

A Real chance?

Metro boss Olaf Koch clearly hasn’t been able to find a buyer for “Real” and seems to have decided on a new and perhaps last push to get the company going again.

The owners of Metro have upped the Mönchengladbach company’s investment budget to €500m.

But they expect Real’s CEO Didier Fleury to achieve a two-percent ebit margin and two-percent annual like-for-like revenues growth within three years.

Fleury’s predecessor and fellow FrenchmanJoël Saveuse didn’t achieve this on a sustainable basis. So will he?

Read More: http://www.german-retail-blog.com/2013/06/27/a-real-chance/

Global

Lidl goes USA

German discounter Lidl is preparing to conquer the USA.

If all goes to plan, its first 100 stores could be opened on the heavily-populated East Coast in 2015 as part of an estimated €500m initial investment.

Read more: http://www.german-retail-blog.com/2013/06/13/lidl-goes-usa/