Lidl has run into difficulties in its expansion plans for Hungary. Bloomberg has reported that all 14 of the German discounter's applications for exemption from legislation resticting the development of stores larger than 3,300 sq ft in the country, have been rejected.
The legislation was passed by the Hungarian government in January and so far, has seen the dismissal of 35 of the 96 applications for exemption it has received, according to Bloomberg. It is thought that foreign companies who wish to open large retail units in Hungary are the main target of the law.
The Schwarz Group-owned discounter plans to overcome the set back and continue with its plans for expansion. Judit Tozser, PR manager for Lidl Hungary, told the press, “By giving Hungarian suppliers regional opportunities, Lidl had more than €20 million in exports from Hungary in 2011 and that is growing continuously. We hope these efforts also represent important values for decision- makers and that laws will take such criteria into account in the future.” (10 Aug)
© 2012 ESM European Supermarket Magazine
