Wholesale expansion
Eurocash, the largest cash-and-carry chain in Poland, has opened its 100th wholesale store and plans to expand further.
The new warehouse, which covers a total area of 2,000 sqm, is located in the więtokrzyskie voivodship town of Skarżysko-Kamienna.
Eurocash stores offer wholesale-priced goods for grocery outlets. "The concept behind the Eurocash Group's activities is based on the needs of small and medium-sized grocery stores across Poland," said Luis Amaral, president of Eurocash's board. He also explained that it was the cash-and-carry chain warehouses across the country that formed the basis for the group's development.
"Thanks to a business model which is based on low costs of investment and financial control, as well as centralized logistics, our wholesale stores can offer the lowest prices on the market. We have opened our 100th store and we still see more demand for such outlets. We intend to continue to develop dynamically in this sector and plan to open from six to 10 stores in 2008," said Amaral.
Along with the further expansion of its own stores, Eurocash also plans to consolidate warehouses in the fast moving consumer goods (FMCG) sector. In December, the company signed an initial agreement for the acquisition of McLane Polska, which has a network of 300 IGA supermarkets run as franchises and whose annual turnover amounts to approximately zł.1 billion. After this acquisition Eurocash expects to become the largest company in the FMCG sector in Poland, with revenues estimated at over zł.5.5 billion.
Anna Kapica-Harward
