Polish convenience retailer Żabka opened a pilot store in Romania’s capital Bucharest last month, as part of its international expansion plans.
Froo, the new brand name for Żabka's Romanian stores, is currently undergoing a trial run. Limited to a select group of testers, this 'friends and family' phase allows the company to gather feedback before a public launch.
A company spokesperson told local portal Economica that “the first step is to open several test locations” to gather customer feedback and test their concept before full-scale rollout. The success of this initial phase will determine the future pace of their expansion in Romania.
Four other stores are also set to open in Bucharest in the next period. One of them will operate in the space previously occupied by Cora Urban, the convenience store brand conceived by Louis Delhaize and sold to Carrefour in Romania.
Żabka plans to expand further in Romania, aiming for 200 stores by year-end and targeting €175 million in revenues.
Acquisition
This comes on the heels of their acquisition of a majority stake in Romanian distributor DRIM Daniel Distribuţie FMCG earlier this year for €103.8 million.
Żabka has set ambitious goals for Romania, aiming to crack the top 50 domestic companies by 2028. Its goals include becoming the number one modern convenience store chain and reaching the number three spot in the distribution market. These targets were revealed during a meeting with potential Romanian partners, according to Ziarul Financiar.
Żabka's standard stores in Romania will offer a product selection of around 2,300 items, featuring a mix of 1,300 international brands and 550 products sourced from around 160 local manufacturers.
In Romania, Żabka will compete with market leader Profi, with around 1,700 stores and annual sales of over €2 billion.
