After two years of losses, Mega Image supermarkets re-become profitable in Romania

The Mega Image supermarkets chain, with 66 stores in Bucharest alone, managed to turn profitable in Romania last year, with a reported profit of around EUR 0.53 million, after posting losses for the previous two years in a row. Its revenues last year reached EUR 212 million. The year before, Mega Image reported a loss of EUR 3.3 million, at revenues of EUR 146 million. In 2007, just before the crisis, Mega Image had a slightly lower profit than last year's.

Mega Image, which has recently appointed Catalina Aldea as commercial manager, has started an aggressive marketing campaign and increased the pace of stores opening. It also added new brands, besides the Mega Image supermarkets. It started opening Red Market units and Shop & Go units and continued to expand country-wide. IT now runs 23 stores outside Bucharest, having focused on the areas near Bucharest, where many of the new residential compounds are located. "Revenue growth in Romania was driven by new store openings and strong comparable store sales," according to Delhaize Group, Mega Image's owner. Another player on this market, which has been said to be an acquisition target for Mega Image is G'Market, with fives stores in Romania. The company's sales reached EUR 19.4 million in 2010, down on the year before, but G'Market stayed on the loss side. Its loss reached EUR 8.7 million, two times the one posted in 2009. Corina Saceanu, corina@romania-insider.com (photo source: Mega Image)