Billa and better

Rewe Group plans to spend over EUR 130 (zł.515) million on investments in Poland over the next five years. The company wants to increase the number of its cash-and-carry stores and Billa supermarkets to 90, and is also planning acquisitions. In this way the company aims to become one of the top three retailers in Poland.

"Apart from Russia, Poland is the most attractive Eastern European market. The sale of groceries will increase from EUR 38 [zł.150] to EUR 46 [zł.182] million," says Alain Caparros, president of Rewe Group.

Poland is facing a consolidation process on the retail market. Currently, the market share of the five biggest retailers in Poland is estimated at some 40 percent, whereas in Hungary it amounts to 60 percent and in Sweden to 95 percent.

"We also want to take part in the process as one of the main players on the market," says Janusz Kulik, president of Minimal, which Rewe will rebrand to Billa by the end of the year. "Our position both in Germany and in Europe entitles us to take part in the game," adds Kulik. "We want to develop through organic growth and acquisitions. We also want to be open to other models of cooperation, such as joint ventures, franchising and strategic partnerships."

According to Rewe's strategy, Billa stores will be located in cities and towns with a population of more than 50,000. Smaller towns will be considered individually.

Existing stores which currently don't live up to the company's expectations will be modernized and rebranded with the Billa name. Kulik says Poland is evolving into a society that prefers fast and comfortable shopping to long and tiring visits to hypermarkets. Billa supermarkets will be directed to these customers.

In Poland the group has 10 Selgros cash-and-carry stores and 22 Minimal supermarkets. It employs 5,500 workers. Its turnover amounted to EUR 565 million (zł.2.24 billion) last year. Across all the 13 countries in which Rewe operates, it has around 1,200 stores and employs 260,000. Last year's total turnover amounted to EUR 42 (zł.166.5) billion.

Andrzej Wróbel