Slovenian retailer Mercator has confirmed plans to exit the Bulgarian market by the end of next month.
The retail group had said in September last year it was mulling the sale of its Albania and Bulgaria businesses in a bid to boost its bottom line. Mercator booked an annual loss of over EUR103m (US$139.8m) in 2012 amid flat sales and write-downs on assets.
Go deeper with GlobalData
Discover B2B Marketing That Performs
Combine business intelligence and editorial excellence to reach engaged professionals across 36 leading media platforms.
The retailer is targeting cost savings of around EUR60-80m per year over three years through improving logistics and seeking new suppliers.
In line with this strategy, the group quit Albania at the end of 2012 and has now confirmed plans to withdraw from the Bulgarian market by the end of June.
“The withdrawal from the Bulgarian market is being done through the interactive relationship with our partners – owners of retail premises and trading companies present [in the] Bulgarian market,” a spokesperson told just-food. “Those activities are currently in progress and cannot be commented [on] until the final solution, planned for the end of June.”
The spokesperson said Mercator’s strategy is to focus its future activities on the development of its businesses in Slovenia, Serbia, Croatia, Bosnia Herzegovina and Montenegro.
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalDataThe retailer employs around 205 staff across four business units in Bulgaria.
