Galeria's makeover

A year after its acquisition of 12 Galeria Centrum (GC) stores in eight cities around the country, Vistula & Wółczanka (V&W) has opened its first GC store based on a new design concept in the Pasaż Grunwaldzki shopping center in Wrocław. The new store is now more upscale and spacious with a black, red and white color scheme prevailing.

"If the new concept turns out to be successful in terms of growing revenues, we will definitely consider raising more money on the bourse for further development of the GC chain," says Rafał Bauer, V&W's president. The firm's development strategy for GC calls for less efficient stores to be closed and new locations to be considered. Following the launch of the Wrocław store, three new GC stores are scheduled to be opened in Gliwice, Gorzów and Katowice, by the end of 2007. Depending on their success, V&W wants to open several stores annually.

According to research commissioned by V&W, the GC brand is very well recognized by Poles; however, they don't often shop there. According to Bauer, the key to success in Poland's dense and highly competitive retail market is to increase the quality of service.

V&W's current portfolio comprises almost 200 stores, and its net profit in 2007 is expected to amount to zł.40 million, compared to zł.16 million in 2006, with a turnover of zł.500 million. In 2006 GC achieved zł.200 million in turnover, but saw net profit come in at close to zero.