[size=75:1p9sdwsm]Dnevnik 6 April 2010

Almost half retailers plan expansion of Bulgarian networks

Nearly half of the players on the Bulgarian retail market plan to boost their network over the next two or three years, according to a survey by global consultancy GVA Sollers Solutions.

The survey, carried out among 147 food, textile and apparel, footwear, electronics and other retailers, revealed that as many as 9.89 percent of the respondents do not plan long-term expansion, citing the bad shape of the Bulgarian economy and the lower purchasing power of the population.

A total 45.22 percent of the retailers in the survey own between five and ten stores in Bulgaria, scattered in the big cities such as Sofia, Varna, Plovdiv, Bourgas, Stara Zagora. As many as 19.85 percent of the retailers have more than 10 stores, opting for more locations which are, however, smaller in size.

The bulk of the retailers seek to rent shops in busy streets, especially close to markets, public transport spots, supermarkets, fast-food restaurants, public facilities and major clothing and household chains. Shopping centres also attract a fair amount of tenants.

A total of 36.44 percent of the respondents have hired a consultant to help them select the location of their shop. One in five has occasionally used professional services.

According to the survey, most retailers (61.25%) would rather rent than buy a location. Only 16.48 percent would buy their own shop.

Most rents range between three and five years (39.11%) and rarely more than seven years (7.94%).