V&W goes up a size

Within the next two years, Vistula & Wólczanka (V&W) wants to add 12 new Galeria Centrum (GC) stores to its recent purchase of three GC department stores and 10 smaller GC shops. The additions should significantly increase the retail space of V&W, which, including the GC buyout, amounts to some 57,000 sqm.

In order to fully merge V&W with Galeria Centrum, as well as renovate its present stores, the company wants to issue new shares. The planned influx of funds is estimated at zł.50 million.  

"In a small shop we cannot serve the mass customer, which we are mostly interested in. We opened a mega-store in Arkadia [shopping center in Warsaw]. It was a success. We wanted to have our own [department store] brand and Galeria Centrum was just what we needed," said Rafał Bauer, president of V&W, explaining the reasons for the acquisition of GC.

The company is already looking to other acquisitions. On the Polish market the choice is limited, but Bauer doesn't exclude foreign firms and says that the next transaction will not be completed in the next six months. Bauer says the company's goal is to become the sales leader in the sector. Currently, LPP holds the top spot.

In the meantime, Bauer is counting on the advantages the merger is expected to bring. The total amount of savings to be made by the end of 2009 will range between zł.28.2 and zł.43 million. The merged company should also earn around zł.500 million in revenue next year.