Billa Bulgaria reported a 15% jump in turnover during 2023, reporting sales of BGN 1.43 billion (€731.1 million), making the business the third biggest segment within Germany's REWE Group.
On a same-store basis, sales grew by 11% to BGN 1.351 billion (€690.2 million), while customer numbers rose by 5.4%.
Vigintas Shapokas, executive director of Billa Bulgaria, attributed the retailer's success to a combination of factors, including price rises and increased customer traffic, according to local media portal Capital.
Market Share Gain
Billa Bulgaria's market share climbed from 18.7% in 2021 to 20.2% in 2023 (based on NielsenIQ data). While the retailer currently holds third position in terms of revenue, the gap to the leading retailers, Kaufland and Lidl remains significant.
Year-on-year growth slowed in the first quarter, with sales revenue increasing 11.5% to BGN 337 million (€172 million), while the customer base expanded by 6.8%.
Almost half (48%) of Billa Bulgaria's sales in March 2024 came from products on promotion.
Store Growth
Looking ahead, Billa Bulgaria plans to solidify its position as the chain with the most stores in the country. It aims to open 12 new locations by the end of 2024, bringing its total store count to 171.
This move will see the retailer enter certain Bulgarian municipalities for the first time, including Teteven and Tutrakan. It will also expand its presence in existing cities like Pleven, Varna, and Burgas.
Billa Bulgaria is allocating BGN 73.5 million (€37.6 million) toward new store openings and plans to renovate 11 existing outlets.
Additionally, it is building a new regional logistics base in Zagore, at a cost of BGN 47.2 million (€24.1 million), with a planned completion date by year-end. This facility will be environmentally-focused, featuring a photovoltaic system to generate 90% of its required electricity.
Billa Bulgaria is expanding its online ordering service to include Plovdiv, Varna, and Pleven, in addition to Sofia. This channel is proving successful, generating daily order volumes comparable to a medium-sized store.
The company boasts over 2.2 million loyalty card holders, with 1.5 million actively using its services. Its revamped loyalty program launched in October 2023 rewards frequent shoppers with increased discounts.
