Jerónimo Martins has announced plans to expand into three new countries with two of its banners: Biedronka and Hebe. Biedronka is anticipating entering Romania and Hebe is planning to enter Czech Republic and Slovakia, with the latter’s expansion planned for late 2020. The group claims it will invest €750m to reinforce its 2019 activity.
Pingo Doce’s short term investment plans
Portugal-based Pingo Doce is expecting to increase its catering and ready-to-eat meals offer to meet rising shopper demand. The retailer recently opened a central kitchen and invested in meal solutions in 2019. Separately, it said it is aiming to open 10 new Pingo Doce stores and one Recheio.
Biedronka to enter Romania
Poland-based Biedronka has revealed it is considering expanding into Romania. The retailer announced Biedronka’s turnover increased strongly, by 8.8% in local currency terms, in 2019, with like-for-like (LFL) sales growing 5.8%.
Pedro Soares dos Santos, Jerónimo Martins CEO confirmed the group ‘has been strengthening its balance sheet very strongly because it’s time for Biedronka to grow beyond the borders’. The retailer has stated it is uncertain whether the expansion will take place in 2020 or 2021.
Market entry into Romania could take different forms
We highlight three main opportunities for Biedronka to expand into Romania:
- Entering the market as Biedronka and expanding organically
- Through the acquisition of another retailer
- By developing a completely new banner
It is felt that Jerónimo Martins would most likely enter the market through acquisition, using another retailer to take advantage of economies of scales. Furthermore, the group would gain instant access to a vast network in the Romanian market and benefit from the strengths of the local player. Possible retailers Biedronka could acquire include Profi, Anabella and other small retailers, with the first felt to be the most likely.
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