Cologne/Prague, 15 Sept - Through the acquisition of Plus, Penny has doubled its store network to nearly 300 sales outlets throughout the Czech Republic and raised its market share from 16 percent to nearly 22 percent. With turnover of about Euro 1.1 billion and more than 5,000 employees, Penny is now the No. 1 in the Czech discount market.
Now that Czech anti-trust officials have approved the acquisition, PENNY can move forward with the rapid integration of the companies. In this work, 30 former Plus markets will be incorporated into the sales network of the BILLA supermarket chain, which, like PENNY, is a member of the REWE Group of Germany. The former Plus storage facility in Radonice as well as both PENNY warehouses in Jirny and Lipnik will remain in operation after the acquisition.
"The working relationship between both companies during the merger process is exceptionally good and extremely professional," said Klaus Schneider, Managing Director of PENNY in the Czech Republic, today at a press conference in Prague. "In particular, the integration of Plus employees into the PENNY organization is outstanding," said Martin Peffek, Managing Director of Plus. "Nearly all employees have transferred and are being warmly welcomed by the PENNY colleagues." Only a few of them voluntarily decided to leave the company, he added.
All Plus stores are to be converted into PENNY outlets by the end of the first half of 2009 at the latest. "We will remain the Czech discounter and offer a large range of Czech and regional products in our assortment to complement our international brand products," said Pavel Kebisek, Managing Director of PENNY in the Czech Republic. The offerings will also be enhanced by the proven and successful products in Plus’ assortment, Kebisek said. Over the mid-term, the prices of these items will be lowered to the PENNY level, he added. "We are convinced that we offer our customers the best and lowest-priced range of products as a result of this assortment and our closely calculated prices. And we also put a premium on quality and safety", Kebisek said. "Our customers can rely on our integrated quality-assurance system that extends along the entire value chain."
PENNY has been doing business in the Czech Republic since 1997. Today, it has 173 stores and more than 3,000 employees in the country. In fiscal year 2007, the company generated net turnover of about €620 million. "Through the acquisition of Plus, we are not just bolstering our market position. As a result of these investments, we are also making a considerable contribution to the consolidation of modern, high-performance structures in food retail in the Czech Republic," said Janusz Kulik, Managing Director of Discount at the REWE Group. "Thanks to their low prices, discounters help reduce the risk of inflation."
"With PENNY as the market leader in the discount segment and with our full-range retailer BILLA as No. 2 in Czech food retailing, the REWE Group is extremely well positioned in the promising Czech market," said Manfred Esser, a member of the REWE Group’s Management Board. "The focus of the REWE Group’s international expansion is on central and eastern Europe. The Czech Republic is the fifth-largest market in this region and is of particular strategic importance to us because of its location." The merger of Plus and PENNY is expected to generate positive impulses throughout the entire Czech economy, he said.