RUSSIA: Rewe acquires Njam Njam supermarkets
German retailer Rewe has expanded its footprint in Russia to 59 stores through the acquisition of 13 Njam Njam supermarkets.
The outlets are being acquired through the company's Austrian subsidiary Eurobilla, which oversees Rewe's Central and Eastern European businesses.
The financial details of the deal were not disclosed.
"As a result of the acquisition of the Njam Njam supermarkets, we are continuing to expand our position in the group of the leading grocers in Moscow and are generating new momentum for our future organic growth," said Lionel Souque, who oversees international business activities at Rewe Austria.
"At the same time, we are underscoring the major role that Russia plays in our internationalisation strategy," he added.
The company also highlighted the importance of expanding beyond the Moscow grocery market to the Russian regions. The company said it was also looking to the cities of Tula, Kursk and Voronezh to fuel growth.
In the ongoing fiscal year, Rewe said it anticipates revenues generated by its Russian supermarket business to rise by about 40%.
The company confirmed that it is planning further organic growth, with the opening of up to 20 new markets in Moscow and the Russian regions.
This year, Rewe will also open its first Selgros cash-and-carry outlet near Moscow.
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