Mega Image accelerates expansion and wants 90 stores this year | Progresiv
Retailer Mega Image accelerates expansion and wants to open 90 stores by the end of the year, targeting both new areas and cities where the retailer is present and wants to increase its market share. 
"We completed the first semester with 31 new commercial units, reaching 705 stores. We continue to expand in the second part of the year, and acceleration of the expansion also comes from the development on new markets, beyond the comfort zone, such as Timisoara or Cluj-Napoca. We have the map already done, we are going with the expansion in the big cities, the next entrance being the market in Iasi", said Emil Ilin, Commercial Director of Mega Image.
Expanding more vigorously will also translate into the investment budget. "Last year we had a total investment budget of 55 million euros. If we reach the 90 stores threshold, we expect an increase of up to 50% in the expansion budget. In addition, we also plan to invest in the storage area. We have two warehouses at Popesti Leordeni and Stefanesti (Ilfov County), the total area being 8 hectares. The warehouse in Stefanesti supplies the stores in the country, so the surface will be extended from 35,000 square meters to 80,000 square meters", said Adrian Nicolaescu, VP Marketing within the company.
Investments of 0.5 million euros in the "Gusturi Romanesti de la Gospodari" program
A substantial budget is also allocated to investments in private brands and implicitly in the Romanian Gusturi Romanesti de la Gospodari.
"This year we have been celebrating six years since we started this program and from 18 farmers and 10 hectares originally, we have now reached 140 local producers with a combined area of 86 hectares of solariums. We are talking about families of farmers who are directly involved and are leading the business from generation to generation, at a distance of no more than 150 kilometers from Bucharest to be efficient from the point of view of logistics", Emil Ilin pointed out.
At this moment, the assortment of Gusturi Romanesti fruits and vegetables includes 44 assortments, 6 kinds of vegetables (lettuce, tomatoes, cucumbers, eggplants, bell peppers, peppers) that are produced in the Gusturi Romanesti program.
"The entire production process is supervised. We take care of seed procurement and test products to make sure they are in compliance. We invest 250,000 euros annually in this project and another 250,000 euros in communication because the market needs to be educated. It is a project that benefits both parties. For example, there are producers who get over 1 million lei annually from the contracts with us. And in our case, the volumes on Gusturi Romanesti de la Gospodari vegetables and fruits grow by 30-40% annually", Adrian Nicolaescu explained.
The Gusturi Romanesti de la Gospodari program came as an addition to the Gusturi Romanesti, launched 10 years ago by Mega Image. At this time, the retailer owns about 400 products under this brand, accounting for 30% of total private label sales. Last year, Mega Image reported a turnover of 5.73 million lei, up by 17% over the previous year.
