Migros to expand
its business operations in the central European region, with the
announcement that it is to open up further retail outlets in FYR
Macedonia through a loan from the EBRD.
The $8.3 million (€6.9m) loan, which has been made over an eight-year period is being used to finance the construction of a retail complex by Ramstore Macedonia, a local company majority-owned by a Bulgarian subsidiary of Migros Turk. The retail complex, to be constructed in Skopje, the country's capital city, will include a shopping mall and a hypermarket.
Hans Christian Jacobsen, Director of the Agribusiness Team at the EBRD, said the Bank is very pleased to be supporting Migros Turk, one of the most active and successful retailers in the former Soviet Union. Migros is introducing modern food retail formats to the former communist countries which are increasing competition and efficiency of these countries' food distribution, Jacobsen said.
The bank says that its investment will ultimately favour consumers through higher quality goods and increased range of food products sold at competitive prices. The project also aims to benefit local suppliers who can gain improved access to consumers through the Ramstore hypermarket network.
Established in 1954, Migros is the leading food retailer in Turkey, with annual consolidated sales topping $1.3 billion in 2003. In addition to its Turkish operations, Migros has expanded rapidly through eastern Europe and the Commonwealth of Independent States, with operations in Russia, Kazakhstan, Azerbaijan, Bulgaria and now also in FYR Macedonia. This project builds on previous cooperation between the EBRD and Migros Turk. In 2000, the Bank approved $12.6 million to help the Turkish company expand into Bulgaria.
Omer Bozer, General Manager at Migros Turk, said the company's strategy is to be an early mover in the emerging markets and to introduce the modern Ramstore retailing concept to the people of these markets. He added that Migros Turk welcomes the EBRD's support to help the company enter the FYR Macedonia market and to take full advantage of further growth opportunities in the country. The construction of the shopping mall will start in May and is expected to open in early 2005.
The EBRD is currently the largest investor in FYR Macedonia, with €322 million in 22 projects. Across its 27 countries of operations, the Bank has invested €3.25 billion in 204 agribusiness projects.
