Slovenian retailer Mercator has signed an agreement with Velenje-based Era Good to acquire/transfer a part of its activities.
Era Good is an integrated food supplier for professional buyers in the HoReCa sector, small independent traders and public institutions. It also has its own private-label brand, simply called Good.
According to local media, the portion of the business being acquired is involved in food wholesaling and the HoReCa programme.
The finalisation of the agreement is subject to the approval of the Slovenian Competition Protection Agency. The size of the transaction has not been disclosed, but Era Good has annual sales of about €20 million.
According to Mercator board member Igor Maroša, the wholesale segment in Slovenia has significant growth potential, as it is less consolidated and more locally focused. “We intend to improve the wholesale product range, and we see good opportunities for revenue growth," he added.
In 2013, wholesale accounted for 13.8 per cent of Mercator’s total revenues. According to the 9M 2014 reports, this segment recorded sales growth, while retail sales fell by 2.8 per cent.
In its 13 cash-and-carry centres around Slovenia, Mercator currently offers basic foodstuffs, milk and milk products, fruits and vegetables, fresh meat and meat products, frozen food, alcoholic and non-alcoholic drinks, and some non-food products.
© 2015 European Supermarket Magazine – your source for the latest retail news. Article written by Branislav Pekic.