Tengelmann to Sell Plus Discount Stores in Bulgaria, Romania - Report

Business | January 8, 2010, Friday // 15:50|  views

Lidl plans to launch its business in Bulgaria in spring 2010. Photo by EPA/BGNES

German retailer Tengelmann is in talks to sell its discount retail chains in Romania and Bulgaria to its rival Lidl, which is part of Germany's Schwarz retail group, according to reports.

Tengelman, the parent company of Plus, owns 94 and 16 stores in Romania and Bulgaria respectively.

The news comes on the heels of reports that Lidl has indicated interest in acquiring the Bulgarian business of its German competitor Plus retail chain.

In 2007 and 2008 Plus sold its business in most European countries. For the last several years the chain has been active in Austria, Romania and Bulgaria, with divisions in those countries in May 2008 united under the name of Plus Eastern Europe.

According to realtors the economic crisis in the past year has proved fertile for the discount retailers stepping on Bulgarian soil in recent months and the country will see their boom in 2010.

Three food discount chains are currently operating in Bulgaria; Kaufland, Penny Market and Plus.

Kaufland is a part of the Swartz Group which also owns Lidl. It is a soft discounter that entered the Bulgarian market in 2006 in Plovdiv. Now it is strongly positioned on the market with more than 26 hypermarkets.

Penny Market (Rewe Group) is another German soft discounter with an aggressive growth strategy for Bulgaria.

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Tags: Kaufland, discount, Lidl, Plus, Penny Market, Tengelmann

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