Retailer Penny signs a 10-year, EUR 3 billion investment plan for Romania
Rewritten Article:
Penny, the German discount store chain, is aiming high in Romania. With dreams of opening a whopping 1,000 stores by 2035, they're currently operating at 417 locations — quite the leap from their initial analysis in 2003 that suggested only 200 stores could potentially thrive in the Romanian market[1][3][4].
According to Daniel Gross, the CEO of Penny, they've been doing pretty well in Romania over the past few years. Back in 2003, they set their sights on 200 stores, but a decade later in 2014, they bumped that number up to 400 stores for 2025, a goal they managed to meet ahead of schedule[2]. Now, they're setting their sights even higher, looking for room for a thousand stores.
Last year alone, Penny invested a hefty €177 million in Romania, the largest sum ever allocated for local development by the company[2]. In addition to physical store expansions, COO Daniel Crișan highlighted the company's commitment to sustainability, with €30 million set aside last year for the Guarantee-Return System. Starting this year, all new stores will be equipped with packaging recycling facilities[2].
In 2023, Penny posted a turnover of RON 9.4 billion (€1.9 billion) in Romania, a 13.5% increase year-over-year[3]. This growth was driven equally by the expansion of the chain (more stores) and rising traffic per store[3]. Even with a minor 0.8% decrease in the prices of goods sold by the group, Penny managed to achieve this higher turnover despite the country-wide inflation[3].
Daniel Gross, the company's CEO, explained that customers are being careful with their purchases, showing a preference for promotions and private labels[3]. Penny has been a part of the Romanian market since 2005 and is part of the REWE Group, which also operates other retail brands and is active in the tourism industry.
Penny plans to open 40 new stores this year, alongside the completion of its fifth logistics warehouse in Mihăilești[2]. To achieve their 1,000-store goal, they'll need to open an average of about 58 stores per year, though initial phases might prioritize higher yearly openings followed by a stabilized growth[1]. Investments will focus on expanding warehouse infrastructure to support the enlarged network, ensuring efficient supply chain operations[2][4].
(Source: Revista Progresiv, Ziarul Financiar, and capital.ro)
(Photo source: Emilio100/Dreamsitime.com)
- By 2035, Penny, the German discount store chain, plans to operate a chain of 1,000 stores in Romania, surpassing their initial analysis in 2003 that suggested only 200 stores could potentially thrive in the Romanian market.
- The retail industry in Romania is experiencing significant investments from Penny, with the company allocating €177 million for local development last year, the largest sum ever invested by the company.
- In addition to opening 40 new stores this year, Penny is also focusing on sustainability, setting aside €30 million last year for the Guarantee-Return System and equipping all new stores with packaging recycling facilities.
- Penny's business strategy in Romania involves expanding its warehouse infrastructure to support the enlarged network and ensure efficient supply chain operations, with the aim of opening an average of about 58 stores per year to meet their 1,000-store goal.
