Local supermarket operator CBA Asset management has become the latest player to join the Sofia grocery market.
The Veliko Tarnovo-based company just launched a 2 mln lev supermarket in Sofia residential district Svoboda. Further rollouts in Sofia under the company's convenience store format are upcoming later this year, said Krasimir Gardev, one of the key shareholders in the supermarket operator.
CBA, is an alliance of local discount supermarkets active in more than two dozen Bulgarian cities modeled after Hungarian discount chain CBA Commercial. Each outlet is independently owned but as bulk purchasers, CBA members are able to negotiate discounts from the suppliers.
At the moment, CBA Asset management is in talks for several outlets in Sofia and plans to establish a presence in all Bulgarian cities with population of over 20,000 over the next two years, said Gardev.
The company official said their supermarkets will compete with the likes of Fantastico and Billa rather than with the T-Market chain, especially in terms of product range.
CBA Asset management, which trades on the Sofia exchange in late January, will not go after the customer group targeted by local upscale grocers Piccadilly and Elemag and will continue to position its outlets as neighborhood convenience stores, said Gardev.
The company expects to promptly finalise the acquisition of Varna-based supermarket chain Burlex 104 in a deal that will make it the biggest locally-owned chain of grocery stores.
The two companies signed the relevant agreement in early February but prolonged commercial registration procedures have held off the wrap-up of the transaction, said Gardev.
The Burlex deal would add 11 outlets to the CBA network in North-eastern Bulgaria, bringing their total to 29.
A week ago, the company opened a hypermarket in Veliko Tarnovo. It plans to add 16,500 sq of retail space by mid-2008.
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