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Greek toy retailer Jumbo to open new store in Romania by end-2021, buys land for two more

Greek toy retailer Jumbo to open new store in Romania by end-2021, buys land for two more

BUCHAREST (Romania), September 17 (SeeNews) - Greek toy retailer Jumbo said that it will launch a new store in Craiova, in southern Romania, by the end of this year and that it has bought land for more units in the country, even though it had to postpone a number of store and warehouse openings due to the Covid-19 crisis.

Jumbo has already started the recruitment of staff for the new store in Craiova, Jumbo said in its first-half financial report published on its website on Thursday.

Jumbo also said that it has proceeded with the purchase of land in Iasi and Sibiu, where it plans to develop Jumbo stores of some 14,000 sq m each.

Although the group has not cut down on its investments, lack of products lead to postponing operation of the new stores and warehouses, as well as the operation of the online store in Romania, the company added.

"Postponing the operation of the new premises strengthens the management's assessment that the year 2021 will be another year without possible growth compared to the healthy past," Jumbo said.

In June, Jumbo announced that it is postponing for 2022 the launch of its Romanian online store planned for this year.

The Romanian business generated 23.1% of the group’s turnover during the first six months of the year and contributed 27.52% of the group's EBITDA. In the respective period of the previous financial year Romania contributed 19.26% of turnover and 23.48% of EBITDA, the report indicated

Jumbo posted a gross profit of 36.7 million euro ($43.2 million) in Romania in the first half of 2021, up from 26.8 million euro a year earlier, the report showed.

The net sales of Jumbo stores in Romania rose to 72.46 million euro in the first half, compared to 53.7 million euro in the same period of the previous year.

According to the retailer, in the first half of 2021, it stood financially strong, demonstrating a positive trend in sales and profitability, exceeding the levels recorded in the first half of 2019.

However, such results were achieved in a difficult, misinterpreted and ever-changing environment, both in terms of health and of operational and cost data, Jumbo added.

During the first half of the year Jumbo group’s sales amounted to 313.78 million, up by an annual 12.54%.

The company operated 80 stores in Greece, Cyprus, Bulgaria and Romania and two online stores in Greece and Cyprus at the end of June 2021.

At the end of the review period, Jumbo employed 1,324 in 14 hyperstores in Romania's Bucharest, Timisoara, Oradea, Arad, Ploiesti, Pitesti, Constanta, Suceava, Bacau, Braila and Brasov.

In April, Jumbo said that it targets at least 11 new store openings in Romania in the next five years, expanding its network in the country to 25 stores.

($=0.8496 euro)