Deichmann and NG2 prepare expansion plans

The company, whose spending on investments in Poland is expected to total zł.34 million this year alone, said Poland was a key market and a gateway to Ukraine and the Baltic states. Deichmann is a family-owned company that funds its growth from its own cash and does not report earnings figures. Revenues at its Polish operation are expected to come in at zł.450 million this year, up from zł.366 million in 2006. Deichman's arch-rival in Poland is NG2, the listed group, which is much bigger with 430 stores under brands such as Boti, CCC and Quazi. NG2 is planning even more ambitious expansion, hoping to open 300 stores per year over the next three years to expand its network to 1500. But, says NG2 CEO Dariusz Miłek, "Deichman's is the only big rival we have so we are not happy it exists." NG2 expects to make a profit of zł.81 million this year on sales of zł.540 million, up from zł.53 million and zł.400.9 million. Worldwide, Deichman has 2,200 stores in 16 countries and employs 26,000 people. Revenues were EUR 2.7 billion last year and are expected to hit EUR 3 billion this year. (Puls Biznesu, p. 9) R.M.