Polish retailer Zabka, with over 10,000 stores in its home country, has officially entered the Romanian market with the opening of its first store under the Froo brand, which the group uses for the local market. This opening, although "quiet," marks a testing phase of the store's processes and operations, and it is expected to be opened to the public soon, according to Ziarul Financiar.
Sources cited indicate that this first unit is located in Bucharest, in the Progresul Market area. They also show that the retailer has set a target of opening three new stores in May and a total of 200 stores by the end of 2024. The Polish retail group made its debut on the local market in 2023 when it acquired a majority stake in the Romanian distribution company DRIM Daniel Distribuție, with the seller being the Trandafir family. In the meantime, the transaction has received approval from the Competition Council. This agreement was just the first step for the retailer Zabka only the first step towards entering the Romanian market.
Zabka, a giant in the Polish retail market
The Zabka chain of stores has reached approximately 10,000 units in Poland today. In comparison, the entire Romanian retail sector, which includes the nine supermarket chains on the local market, barely reaches 4,800 units. Founded in 1998 by a Polish entrepreneur, the company has pursued an aggressive expansion strategy from the outset, reaching 1,700 stores by 2005.
In 2007, the business was taken over by the investment fund Penta Investment, which in Romania controls the A&D Pharma group, including the Dr. Max pharmacy chain (the former Sensiblu and Punkt networks) and the pharmaceutical distributor Mediplus. Four years later, in 2011, Penta sold its retail business in Poland to Mid Europa Partners, which later relinquished control of it. In 2017, control of this retailer was taken over by CVC Capital Partners. Sources at the time explained that the transaction, which included 4,500 stores, was worth 1.5 billion euros.
Zabka's entry into the Romanian market is a major development for the sector, and it is expected to intensify competition. The retailer is known for its focus on convenience and fresh food, and it is likely to appeal to Romanian consumers who are looking for these types of products and services.
Comments