Aldi opened its 100th store in Hungary yesterday. The German-owned discount supermarket chain has no plans for withdrawal from the country.
The store was opened on Thursday in the former Úttör? Shopping Centre, one of the country’s most iconic department stores, in the capital city of Budapest.
Aldi is one of the multinational retailers present in Hungary that may be hit by the government’s recent proposal, much criticized by supermarket chains. The bill would ban the operation of supermarkets with an annual turnover above HUF 50 billion (€163 million) from 2018, if they go for two years without turning a profit in Hungary.
The German retailer had a HUF 4.9 bln loss on net sales revenue of HUF 80.2 bln last year, public records show.
Aldi has not commented on the controversial proposal by the economy minister, executive director Székács Tibor said yesterday that since its entry to the Hungarian market, the company has always been planning on a long-term business in the country.
Aldi’s model is to sell commonly purchased items under a private label. It reduces overhead costs by operating smaller stores. Aldi has only been active in Hungary since 2006. Today, the chain in Hungary has a combined retail space of more than 100,000 sqm. The unit employed more than 1,450 people at the end of the year.
© 2014 European Supermarket Magazine – your source for the latest retail news. Article written by László Juhász
