Turkey-based discounter A101 has announced annual results for 2012 and set out its expansion plans for the year ahead.
Retailer’s sales break TRY2 billion mark
A101’s chief executive, Erhan Bostan, said that in 2012 sales had reached TRY2.1 billion (€886.7 million) from the company’s 2,032 stores.
2013 to see further growth
Bostan went on to say that A101 was aiming to add a further 450 stores in 2013, which would help underpin its target of growing sales by 55% during the year, to reach TRY3.3 billion (€1.4 billion). He was confident that the target could be reached, despite the entrance of new chains, such as UCZ and Ekomini, and the growth of existing rivals. According to Bostan 'rising competition has been an issue for the Turkish retail market for the last two decades, so [this is] nothing new.'
Bostan said that the retailer would not need to sell a stake or float in order to generate the money needed to build the additional stores, despite speculation in 2011 that it would. Bostan was quoted as saying 'The owners needed cash in 2011 and started looking for a financial partner then. Now we don’t need outside cash because the owners injected cash last year.'
In the longer term, Bostan said that A101 would look to open stores outside Turkey during the second half of 2015.