Discount store chains and shopping malls to flood the Bulgarian market in 2010

published on 1/7/10 1:37 PM

Photo: Tanya Harizanova

Discount store chains will permanently occupy the Bulgarian retail market in 2010, especially in foodstuffs trade, experts from the sector predict. There are already three foodstuff discount chains in Bulgaria: Kaufland, Plus and Penny Market. All of them have been employing the strategy of stepping into small towns first, and only then in large cities. Kaufland has already set up a network of 26 hypermarkets, and the other two chains intend to double the number of their stores in the country in 2010. Their competitor, Lidl, is to open its first retail stores in Bulgaria next year, which will further intensify the competition between foodstuff chains.

The active development of discount chains has been enhanced by the global economic situation which encourages households to seek ways for optimising their expenses. A second factor is the low penetration rate of discount chains in Bulgaria, as compared to that in other countries in Central and Eastern Europe. This situation provides good opportunities for growth of the companies in this sector. Therefore, they are expected to continue following their expansion strategies.

According to experts, the format of retail parks and outlet stores where big fashion brands sell their collections from previous seasons with large discounts will gradually become more and more popular. “These formats of retail trade are rapidly gaining popularity worldwide, and not only do they remain unaffected by the crisis, but on the contrary, they make profits. The high amount of sales fashion brands register explains why such trade stores are being launched, attracting a wide range of customers. “I believe that in the next few years, these types of stores will widely enter the Bulgarian market along with the growing number of malls”, trade manager Iglika Jordanova commented.

In 2010, we will also witness another trend – the opening of the first stores of some of the world’s largest fashion brands which will offer a wider choice of clothing and accessories to Bulgarian customers. Three large shopping centres will open doors in Bulgaria this year, where world-famous brands will have their stores. Among them are five of the brands of Spanish Inditex Group, including Zara, Bershka, Massimo Dutti, Stradivarius, and Pull and Bear; German multi-label retail company Peek&Cloppenburg; French cosmetics company Sephora; Austrian shoe chain Humanic, and US fashion retailer GAP.

On the other hand, spring is to become a season of opening new shopping malls. Two new large trade centres are to open in March, one of them expected to be the largest on the Balkans.

English version: Rossitsa Petcova

По публикацията работи: Tanya Harizanova

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Discount store chains and shopping malls to flood the Bulgarian market in 2010

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