Delhaize not worried by Lidl’s Serbian plans

Delhaize not worried by Lidl’s Serbian plans

German warehouse groups Kaufland and Lidl are expanding into Serbia, but market leader Delhaize has stated "not to be worried" by this move. The Belgians "still see room for growth", despite disappointing results.

German activity in Serbia

Last month, Serbian Minister of Trade Rasim Ljajic announced that Lidl would start building its first Serbian supermarkets in the second half of 2014. He also added that the supermarket chain announced it will be present in at least 15 different cities in June. 

 

Lidl is not the only Serbian newcomer, as according to Lebensmittel Zeitung Kaufland is also interested in the Serbian market. Kaufland is, just like Lidl, controlled by the family Schwarz, making this look like a coordinated attack on Serbia.

 

Room for growth

Belgian Delhaize had purchased Delta Maxi for 932 million euro in 2011, when the chain was still the unrivalled market leader with a share of 22 %. The move has not been a success story however, as last year Delhaize had to devaluate Delta Maxi by 195 million euro, as the expected profit increase turned out to be lower than anticipated.

 

Nevertheless, Delhaize does not seem particularly worried with the appearance of the two German chains into the Serbian market: “Delhaize is currently the largest Serbian food distributor and the appearance of other parties show that it is an attractive market, but modern retail only accounts for 30 % which means there is still room for growth”, a spokesperson said.

Questions or comments? Please feel free to contact the editors


Lower turnover and new CEO for Geox

19/01/2018

Italian shoe brand Geox’ turnover dropped slightly in the past fiscal year. It also replaced former CEO Gregorio Borgo with Matteo Mascazzini, who came from Italian fashion brand Gucci.

Slower growth for Primark

18/01/2018

Irish fashion chain Primark has seen its first quarter turnover grow 7 % at level exchange rates and 9 % taking the fluctuations into account. Analysts however had expected faster growth.

Zalando's profit is slightly below expectations

17/01/2018

German fashion web shop Zalando has grown nearly a quarter in the past fiscal year and its company profit also nearly grew 5 %, although the latter was slightly below its own expectations.

Record turnover for Yoox Net-a-Porter in 2017

16/01/2018

Online retailer Yoox Net-a-Porter (YNAP) achieved a record turnover in 2017, surpassing two billion euro. That is a growth of more than 10 % compared to the year before, when it just missed that milestone.

Hugo Boss reaches growth targets for 2017

16/01/2018

German fashion brand Hugo Boss has managed to reach its targets for 2017, partially thanks to strong fourth quarter growth. For its full fiscal year, turnover grew 3 % (excluding exchange rate fluctuations).

C&A owners consider sale to Chinese investors

15/01/2018

The Dutch Brenninkmeijer family is considering to sell clothing chain C&A, according to German magazine Der Spiegel. One option is to sell to Chinese buyers.

Back to top