ROMANIA: Mega Image to close all of its stores in Pitesti | Progresiv
Belgian retailer Mega Image has announced that it has decided to cease its current operations in the city of Pitesti. Thus, the company will close in coming weeks two Mega Image supermarkets and two Shop & Go convenience stores the company operates. The company's decision to exit the market in Pitesti is because the sales level is not compatible with sustaining commercial activity. 
"We need to make a difficult decision, which is to close in the next period, the four stores located in the city of Pitesti. The decision is regrettable, however, we need to consider the actual performance of the stores, which is below our expectations. Despite the efforts the company has made since the opening of these stores, sales performance in these areas does not reach the expected level. Moreover, investments in advertising, logistics, pricing, and promotions have not brought the expected results, but added to the losses already registered", said Xavier Piesvaux, General Director of Mega Image.
The decision to cease operations in the city of Pitesti is an exception for the expansion plan of Mega Image. The company will continue the expansion of the stores chain in Bucharest, Constanta, Brasov, but also in other places where Mega Image is already present.
This is not the first case in which one of the big chains decides to close stores it operates in Pitesti: at the end of last year Metro Cash & Carry closed Metro Punct store. With a population of about 155,000 inhabitants, Pitesti is a town where food retail market is dominated by international accounts. In Pitesti operate 20 commercial units that belong to modern trade: Billa (1), dm (1), Kaufland (2), Lidl (2), Penny (2), Profi (7) and Auchan (2), Carrefour (1), Carrefour Market (1) Metro (1).
Mega Image chain is owned by Belgian group Delhaize. With the closure of the four supermarkets the retailer will operate a chain of 416 stores, mostly located in Bucharest, under the Mega Image (201), Shop & Go (212), AB Cool Food (1), Gusturi Romanesti (1) and Mega Drive (1) banners. In 2014 the retailer reported a turnover of 2.82 billion lei.
