Discount Retail Chain PENNY Romania (owned by the German REWE Group), ended last year with a turnover of 4.73 billion lei (US$ 1.2 billion), representing an advance of 19.44% compared to 2019, in the context in which the pandemic generated changes in the behavior of Romanian consumers, motivating them to turn to quality products at fair prices. The company registered a net profit of 85 million lei (US$21 million) in 2020, increasing by 54% compared to the previous year. PENNY Romania aims to invest 5.13 billion lei (US$1.26 billion), the equivalent of over 1 billion euros (US$1.2 billion), by 2029.
In 2020, PENNY Romania invested 371 million lei (US$ 91million) in the modernization and expansion of the store network, continuing its expansion plans in a difficult context. Last year, the company opened 20 stores in the new PENNY format, ending the year with a total of 276 stores.
The retailer ended 2020 with 100 stores in this new format, of which 80 were remodeled and 20 new openings. The new format emphasizes a modern and welcoming design, and the shopping session for customers is improved, due to the large area for fresh products, own brands to the taste of Romanians, but also due to more visible signage of promotions and main food categories.
PENNY entered the Romanian market in 2005 with a procurement policy focused on assortments from regional producers and collaborations with local producers. Currently, PENNY supports local producers and concludes long-term partnerships with them, so that, in the next 3 years, 60% of the assortment will have the main ingredient manufactured and processed as an intermediate in Romania.
Plans 2021
Regarding the future plans, PENNY Romania aims to invest 5,13 billion lei (US$1.26 billion), the equivalent of over 1 billion euros (US$1.2 billion), by 2029, mainly by expanding its network to a total of 619 stores and 6 logistics centers. This year, the company aims to open 25 stores in the country and build the fourth warehouse in Filiași, Dolj County.
At the same time, PENNY Romania aims to remodel 100 stores in 2021 and the entire network of stores by 2022.
Daniel Gross, CEO of PENNY Romania: "Last year was a real test for us. In the face of new challenges, we had to adapt quickly, be flexible, but also firm in our decisions and, above all, prioritize the safety and health of our employees and customers. More than ever, people have been at the forefront of our work in 2020, from ensuring hygiene and distancing conditions in our stores and maintaining open communication with employees, to community involvement and hospital support.
The reported figures indicate that we have passed the test and also confirm that a sustainable business in Romania prioritizes the above. However, I emphasize that the results are the result of a huge effort by the PENNY team, which has joined forces. I sincerely thank them for the dedication, involvement and empathy of all colleagues!”
The Triple RO objective
PENNY proposed that by 2023, 60% of the PENNY assortment should not only have production in Romania, but also have the main ingredient of Romanian origin, as well as intermediate production to be made in Romania.
Sustainability and CSR
Over the past year, PENNY has continued partnerships with non-governmental organizations such as Habitat for Humanity, the World Vision Foundation Romania, Save the Children Romania, the Romanian Red Cross or the Food Bank and has entered into new partnerships, for example with the Goodbye Association.
Social Solidarity and Adi Hădean Association
Social responsibility actions aimed to support health professionals and hospitals, but also vulnerable communities and children in precarious situations. Among other things, the company inaugurated the Buftea community center, built next to Habitat for Humanity and open to children from disadvantaged backgrounds.
The sustainability report of PENNY Romania for 2020 contains more information on three main topics: sustainable assortment; energy, climate and resources; employees and society. It is available in its entirety on www.sustenabilitate.penny.ro/.
PENNY Romania
PENNY is the successful concept of the German group REWE and one of the most active retailers in Romania, with the first store opened on the local market in 2005. The entire network is served by three logistics centers located in Ștefăneștii de Jos, Turda and Bacău. Currently, the PENNY network in Romania consists of 283 stores nationwide and a dedicated team of over 5,300 employees.
See here for more: https://www.retail-fmcg.ro/retail/penny-rezultate-financiare-2020.html
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