Profi to invest EUR 50 mln in expansion in Romania next year

Supermarket chain Profi, the local retailer with the fastest expansion in recent years, plans to continue with the same strategy next year. The retailer will invest EUR 50 million in expanding its network and logistic base, aiming to reach some 900 units, the company’s general manager Daniel Carstea told local News.ro. Profi has opened almost 200 supermarkets and proximity stores this year, reaching close to 700 units. The company has the widest footprint of all retailers in Romania, covering 376 cities, smaller towns and villages. It also has a team of almost 13,000 people, being one of the biggest local employers. The company’s turnover may go over the EUR 1 billion threshold this year, according to Carstea. In the first six months, Profi’s business grew by 36% compared to the same period of 2016, and the general manager expects the dynamic to be higher at the end of this year. The company recorded a turnover of over RON 3.5 billion (EUR 788 million) in 2016, up almost 40% compared to 2015. Its net profit reached RON 126 million (EUR 28.1 million), double compared to the previous year. The retailer is owned by the investment fund Mid Europa, which took it over in November 2016 from Enterprise Investors with EUR 553 million. It was the largest transaction in the history of Romanian retail. editor@romania-insider.com