Italian discounter Eurospin is planning to expand to Croatia, where it is likely to open 20 stores, taking up around 3% of grocery market share in the country, reports Poslovni Dnevnik.
Job announcements have already been made and training is expected to take place in Italy and Slovenia – the two countries that currently boast Eurospin outlets.
The Italian chain operates around 1,100 stores with 7,000 employees.
Absence Of Hard-Discounters
Speaking to Poslovni Dnevnik, Drago Munjiza, retail consultant and former CEO of Konzum, said that there is currently no hard discounter in Croatia and therefore there is a huge potential for Eurospin to be successful in that market.
According to Munjiza, the local retail market is worth HRK 38 billion (€5.1 billion) annually and discounters could take up to 3-4%.
In his opinion, Eurospin is not likely to create any major disruptions on the Croatian market because its foreign ambitions are limited.
However, things could change with the potential arrival of Penny Market, a part of Germany’s Rewe group, according to the report.
Price Conscious Consumers
The Croatian Employers’ Association (HUP) believes that there are market opportunities for new discounters as Croatian consumers are very price conscious.
In addition, the HUP has pointed out that the overwhelming concentration of the retail trade indicates that business is affecting profitability, and the saturation of the retail trade in Europe may also lead to a slowdown in Croatia.
On a positive note, the retail market in Croatia has been recovering since 2015, with both GDP and household consumption showing a positive trend.
© 2018 European Supermarket Magazine – your source for the latest retail news. Article by Branislav Pekic. Click subscribe to sign up to ESM: The European Supermarket Magazine.