Slovenian retailer Mercator has approved a new business plan, which targets sales revenue of €2.4 billion in 2018 and €2.5 billion in 2021.
The company says that the highest share of revenue next year will be generated in Slovenia (56.2%) and Serbia (32.3%), followed by Montenegro (5.5%).
Revenue growth is also anticipated the market of Bosnia and Herzegovina, where Mercator resumed its retail operations in October.
Mercator adds that EBITDA is expected to improve to €97 million in 2018 and €123 million in 2021.
Expansion Plans
During 2018, Mercator says that it will continue to update its store network, with a new retail concept that increasingly focuses on the fresh food department.
It will also pursue activities to improve price perception, while offering its customers a wide assortment of quality and local products. Particular focus will remain on introduction of new technologies and modern shopping services.
In 2018, Mercator Group plans to invest €37.7 million, of which 47% will be used for retail expansion; 20% for upgrades and investment maintenance of the existing stores; 17% for IT investments; 5% for logistics investments; and 11% will be invested in non-trade operations.
Investments in the group's home market of Slovenia will account for 64.5% of total investment funds.
The retailer also plans to continue with the divestment of business assets and to repay bank loans, allowing also for new investments, especially into the new logistics and distribution centre in Ljubljana.
© 2017 European Supermarket Magazine – your source for the latest retail news. Article by Branislav Pekic. Click subscribe to sign up to ESM: The European Supermarket Magazine
