Lidl planning Hungarian rollout
over the next two years under its Lidl discount store banner,
according to reports in the Hungarian press.
Like other discount store operators such as Aldi, Schwartz has seen sales at Lidl benefit from the weak economic conditions in much of Europe over the last year, and was one of the fastest growing food retailers throughout the continent as a whole in 2002, according to market analysts M+M Planet Retail, with an estimated 24 per cent expansion in net sales to nearly €23 billion.
This was been driven by an increase of 200 stores, 50 per cent of which were in Germany, and Hungary, along with Bulgaria, Estonia, Latvia and Sweden, remains one of the company's other core target markets.
The aim, according to press reports, is to open 100 or so Lidl discount stores in Hungary over the medium term.
The first five of these will open this year, including one in the northern Hungarian town of Komarom and one in Bekescsaba, south eastern Hungary. A 30,000 square metre logistics centre is currently under construction in Szekesfehervar, central Hungary, at a cost of HF5.0 billion.
Lidl's prices are around 20 per cent lower than the EU average, making it an ideal format with which to compete with local companies.
Hungary has been one of the most important expansion markets for western retail groups since the early 1990s, and many of the continent's big names are present there, although a few local players are still holding their own.
Market leader is Metspa, a joint venture between Germany's Metro group and the Austrian Spar business, with sales of €1.6 billion in 2002, according to a recent list compiled by M+M.
But Hungarian-owned CBA Kereskedelmi and Co-op Hungary are not far behind, with sales of €1.4 billion and €1.23 billion respectively, just ahead of British market leader Tesco with €1.15 billion.
Provera, owned by Belgian giant Delhaize, is the number five player with sales of €883.9 million, followed by two more German groups, Tengelmann and Rewe, with sales of €716.1 million and €643.2 million respectively.
Tengelmann recently upped its presence in Hungary with the acquisition of 22 stores there owned by the Spar group, in exchange transferring ownership of its 22 Kaisers supermarkets in Hungary to Spar.
The 22 former Spar stores have been converted to Tengelmann's discount store fascia, Plus, taking the total number of Plus outlets in Hungary to 150. Tengelmann operates more than 3,500 Plus stores in seven countries across Europe, and the chain generated sales of over €7.7 billion last year.
Two other Hungarian groups make it into the top 10 - Honiker in eighth place with €616.2 million and Real Hungaria in ninth with €608.5 million - while France's Auchan rounds out the list of leading players with sales of €462 million.
