January 5 (SeeNews) - Supermarket chain operator Billa Bulgaria, part of Germany's REWE Group, will invest over 80 million levs ($43.4 million/40.9 million euro) in its store network and a second warehouse this year, its CEO Vygintas Sapokas told SeeNews.
Billa Bulgaria, the retailer with the largest number of stores in the country, has allocated nearly 35 million levs to open 12 new supermarkets, Sapokas told SeeNews in an interview in late December.
It will for the first time establish a presence in six Bulgarian locations – Troyan, Vidin, Chirpan, Silistra and the Black Sea town of Sozopol.
Furthermore, in the first quarter of the year, the company will launch online sales.
“In the beginning, we will initiate the platform with a limited range in Sofia, and in the future we will plan a gradual expansion to other cities in the country,” Sapokas said.
In addition, more than 32 million levs will be spent on refurbishing existing stores.
The current year will also mark the start of construction of Billa Bulgaria’s new warehouse site near the south-central city of Stara Zagora. As much as 13 million levs out of a total budget of 49 million levs for the warehouse will be invested in the construction. The warehouse is expected to start operations in 2024.
The supermarket operator will continue investing in renewable power sources, after spending 3.2 million levs in 2022 to install solar photovoltaic systems at 29 out of its 148 stores and at its central warehouse in Elin Pelin, near Sofia.
“In 2023, we will invest another 2.1 million levs in the installation of photovoltaics in 21 new stores and we will finalise the process of equipping all of our sites with LED lighting and electronic labels,” Sapokas explained.
Billa Bulgaria’s goals are aligned with those of its parent company, REWE Group, which is aiming for a 30% reduction in greenhouse gas emissions by 2030 with a view to becoming carbon neutral in 2040.
The supermarket retailer, which entered the Bulgarian market in 2000, now employs over 4,700 staff. The company reported turnover of 877 million levs in January-September last year, a jump of 22% compared to the same period in 2021.
“Despite the many challenges that the business is facing, in 2022 our market share has increased by 0.8% compared to the previous year,” Sapokas stated.
Between October and December, Billa Bulgaria opened new stores in Pernik, Sliven, Karlovo and Smolyan, along with its 55th store in the capital Sofia.
(1 euro = 1.95583 levs)