Greek retailer Jumbo buys premises for new hyperstore in northwestern Romania

Greek toy and home decoration retailer Jumbo has purchased the premises of a former clothing factory in Baia Mare, northwestern Romania, where it plans to open its 21st hyperstore in the country, according to Profit.ro.

The transaction is part of Jumbo's continued expansion in Romania. The clothing factory, Habitex, was part of the Belgian group Ikanos that decided to terminate its operations in Romania.

The redevelopment of the site is expected to contribute to the revitalisation of the area and improve the local commercial infrastructure.

According to the previously announced strategy and reiterated in the fall, Jumbo aims to double its hypermarket network in Romania over the next 8 years. The last store opening on the local market was in March last year, in Timisoara.

The group’s expansion continues despite adverse market conditions at this moment. In the first two months of this year, the sales of the Jumbo group in Romania decreased by approximately 4% year-on-year.

"The Romanian market continues to face significant pressures, mainly due to the depreciation of the local currency, the recent increase in VAT, and the implementation of new fiscal measures, with a restrictive impact on consumption," according to Jumbo.

Jumbo operates a network of 10 hypermarkets in Bulgaria. Most stores are located in Greece (53), followed by Romania (20).

(Photo source: Lenutaidi/Dreamstime.com)