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This I think can only be good news for this region of Bulgaria, the Germans are very shrewed investers and they know a good thing when they see one so maybe things are changing now for the good

Bulgarian real estate fund FairPlay Properties and Lidl Bulgaria signed a deal on the sale of a 22 000 sq m plot in the Bulgarian city of Plovdiv on September 30 2009.

Lidl Bulgaria is the local arm of German hard discounter Lidl, part of Schwarzgruppe.

The transaction had a price tag of 2.3 million euro before value-added tax.

The plot would accommodate a Lidl supermarket and was part of the chain's local expansion efforts.

The retailer has been actively growing its Bulgarian network with new outlets in Lovech, Pazadjik, Pleven and Silistra currently under construction.

The Plovdiv plot is part of FairPlay's Retail Park Trakia developmen, which is planned in the city's residential area by the same name.

Fairplay said the park would house a hypermarket of a renown European non-food chain, though the company refused to name the chain.

Sources told Dnevnik that the property fund was in talks with several big retailers but pen had not put to paper yet.

FairPlay would use the proceeds of the sale to reduce its credit exposure, executive director Manyu Moravenov said.

After the Plovdiv deal, Fairplay has repaid 5.4 million euro in principals since the start of 2009.

Yes I agree with you Sallyann the more competition the better.

[size=55:1a1j66of]novinite 01 October 2010

Bulgaria Approves Lidl Takeover of Plus Discount Stores

Bulgaria's Competition Protection Commission has allowed German supermarket chain Lidl to acquire the Bulgarian stores of another German discount chain, Plus.

Thus, the watchdog has given green light to Lidl Bulgaria GmbH's acquisition of Plus Bulgaria Trade KD, Tengelmann Real Estate International Bulgaria KD, Bulgaria Trade EOOD, and Real Estate International EOOD. The Commission has decreed the immediate execution of its decision.

In June 2010, the European Commission referred the antitrust assessment of German supermarket chain Lidl's plans to acquire German retail group Tengelmann's Plus discount retail stores in Romania and Bulgaria back to the national competition authorities.

The Commission threw the fate of the takeover into the hands of Romanian and Bulgarian authorities at their request because a preliminary investigation of the deal showed it would affect competition in several local markets for daily consumer goods in Bulgaria and Romania.

Now that the Bulgarian competition authority has approved the deal, Lidl will take over Plus's 23 outlets in Bulgaria, which have a total of 820 employees. In Romania, Plus has 96 outlets with over 2000 employees. The deal marks the Lidl's entry into the two countries' markets.

German retailer Tengelmann decided at the end of February to sell its Plus discount retail chains in Romania and Bulgaria to its rival Lidl, which is part of Germany's Schwarz retail group. The price of the deal has not been disclosed.

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 German food discount chains are currently operating in Bulgaria: Kaufland, Penny Market and Plus.

The formal ruling issued by the Bulgarian Competition Protection Commission states that its detailed examination of the discount chains market points out that the Lidl takeover of Plus will have an impact on the retail trade of discount consumer goods but that it would not jeopardize and affect negatively the efficiency of competition of the market in question.

"
The Commission found that the retail trade in Bulgaria is carried out through traditional (local, mixed shops, grocery shops, pavilions) and modern (retail chains) forms. The situation in the country shows that the traditional form is still preferred by the population because it lacks clear preferences for a certain commercial format, or stable consumer culture for a certain type of stores. The leading factors for the Bulgarian consumer are the good local, flexible working hours, and, most importantly, the price fluctuations;
the result is that the switching to other outlets is easy,"
states the ruling.

The watchdog's analysis shows that the Bulgarian consumer retail trade features low concentration, with its modern forms (i.e. commercial chains) still occupying only 30% of the market. Yet, the market is characterized as dynamic and exhibiting gradual and stable influx of modern commercial forms.

The expectations are that the consumer retail trade in Bulgaria will grow slightly over time but that the share of the "
modern"
vs. the "
traditional"
outlets will rise steadily. At the same time, the traditional outlets will still continue to cover certain niches.

[size=55:2pxj0tk4]Regal 01 October 2010

Lidl will expand in Bulgaria with a loan of 200 million from EBRD

European Bank for Reconstruction and Development (EBRD) has approved a program to finance the development of the network in Eastern Europe, the German chain Lidl. The Bank will finance the expansion of Lidl in several markets, including Bulgarian, with a loan of 200 million. Information is the Romanian edition ZF.

In August, the EBRD announced that they are considering lending to the same value as the final decision had to be voted by the board of the bank in late September. The EBRD has not yet officially confirmed the amount that will be provided to Lidl.

According to the Romanian edition is the sum of 200 million and will cover the development of the network to Lidl in Bulgaria and Romania as well as that of Kaufland in Bulgaria and Poland.

In April this year announced that Kaufland may invest 100 million euros in developing its network in Romania. Then also announced a possible loan from the EBRD, whose value, however, was 150 million euros.

I wonder if we will see Lidl opening all over Bulgaria now or very soon at last

[size=55:bk98zkxj]novinite 06 October 2010

German LIDL Plans Mass Expansion in Bulgaria

Bulgaria's Prime Minister, Boyko Borisov, officially opened Wednesday the brand new logistic center of the German supermarket chain LIDL.

The 38 000 square-meter center is in the village of Ravno Pole, in the outskirts of the capital Sofia. The investment is estimated at BGN 56 M while the new center will provide over 150 new job openings.

Milena Dragiyska, Manager of LIDL Bulgaria said that by Christmas the number of people employed by the company would go up 5 times, after the opening of stores in a total of 25 municipalities.

4 of the new stores will be in Sofia while one third of all goods stored at the Ravno Pole logistics center will be Bulgarian-made.

"
I support such investors, those who build facilities worth BGN millions on bare land, and have always been against those who received free factories and enterprises by the State and now want subsidies,"
Borisov declared.

The Ambassador of Germany to Bulgaria, Matthias Hoepfner, was also present at the ceremony.

E market my fortress

In recent years, the German group Schwarz won the fame of one of the fastest growing trading companies in the world. At the central level and its two subsidiaries - softer at discount Kaufland and harder Lidl,

The motto was "
expansion"


In this spirit, the managers of the concern, despite or rather because of the crisis scattered flags with logos of the two chains on the map of several new European markets. In 2009, half of group revenues come from markets outside Germany, according to the LZ. This year's expansion continues, but more moderate.

The goal now is to consolidate the positions of conquered territories. Moreover, the potential for expansion of Kaufland and Lidl is far from exhausted. That said Klaus Gerig, CEO of Schwarz Group and chairman of the board to Lidl to Lebensmittel Zeitung. He announced that in 2010 investment budget is maintained until last year's 2 billion. However, plans to enter

New markets are not on the agenda

and exit outside the EU currently does not discuss. The risks of such a strategy are too large as the effects of the crisis can not be calculated, said Gerig. Moreover, a risk-taking is unnecessary, since thanks to the expansion of the group already overcame regionalnostta and is not dependent on the German market. Russia - not China - not twice, "
said Gerig.

He explains that the group system, which relies on rapid expansion and thickening of the network will face a very strong political opposition in countries like China, India and Russia. Outside the EU may be considered "
ordered"
markets like the U.S. and Australia, but no concrete plans for these countries will not. By the end of the year business to Lidl will start in Bulgaria and Romania with gradual expansion. It is expected that the purchase of objects of competitive Plus in both countries to enable Lidl quickly to consolidate its position in the region, says LZ. After his debut in Bulgaria in November this year are not planning other new activities abroad.

Lidl and Kaufland thicken

The focus of the group now falls mainly on building the network of branches in existing markets. Currently Kaufland has 580 sites in Germany and nearly 370 overseas. This year the chain plans to reach thousands of its subsidiary. In Lidl, which comes almost 60% of the turnover of the group, nearly two thirds of business is in foreign markets (5.8 thousand of 9 thousand items).

In his native Germany, where sales network is very tight and competition is intense, Lidl is growing weak. Neighbors also developed markets, however, the situation is different. Over the past two years, discounters expanded massively in the French market. Currently there is over 1500 sites with an annual income of over 5 billion, despite strong price competition in the local Leclerc, wrote LZ.

In Switzerland, the objective is now an outpost of a dense network. Plans are to the end of the year there is an open 50-th object, and the country's potential is estimated at another 150 branches. Besides opening new stores are seriously pen and maintenance costs and

Renovation of store

Every eight to ten years, and even abroad every six because of the low quality of construction is necessary overhaul of existing facilities, said Gerig. Resources are needed to improve service. Much of the budget this year will be paid for construction of bakeries эa fresh bread in the street. These are planned for Lidl stores across Germany over the next 12 months. For 2010, the manager again

Relies on growing revenues

Expectations for 2010 are nearly 57 billion total turnover in the account shall include the prices of the market started to move up. Last year turnover of Schwarz for the first time in years, stalled at 54.8 billion (only 0.8 billion more than 2008). Gerig explains this fact mainly to the declining prices. In "
Lidl"
average reduction of around 4%, and Kaufland - 2 to 2.5%. As a result of increased circuit speed as a number of items at lower prices. This almost offset the effects on profits, says the manager.

Expansion of credit

Despite the crisis, and limited access to credit resources the company has no problems with financing, said Gerig. Last year the credit funds of Lidl, which are predominantly financed new projects, rose to 9.7 billion euros, including included 2.8 billion euros obligations under supplies and services and nearly 7 billion euros in loan interest in data LZ. Kaufland plans are current and future expansion of the chain in Bulgaria and Romania also be financed by long-term loans, according to the World Bank Group.

This is all very positive in the long run for Bulgaria lets hope that others see the potential too and move in I would love to see a company like Tesco give it a go and I'm sure they would be successful in Bulgaria as they seem to be everywhere else they go

Understand the dream of Tesco. But Mothercare and M&
S are in Bourgas but so so expensive.

I think that those 2 have always been expensive even in the UK but I agree about Tesco's it would be nice to see them in Bulgaria lets face it they really don't have far to come I know they are already in Hungary and have plans to enter Romania as does Wall mart so fingers crossed and a lot of

I have my fingers and toes crossed it would be fantastic if some of the known ones were to come to Bulgaria I know from looking back that Tesco has considered it and I do believe they bought some land a long time ago but nothing happened so who knows

Tesco buying land is part of their strategy. They do it all over Europe. They bought part of an industrial Estate in our home town. Demolished all the buildings and have left it for the gipsies to locate there They say it is for future development. ::

thank you all for the update and yes its true the big boys do buy land and then hang onto it

Good luck to Lidl it will bring more jobs into the town

pixi wrote:

Good luck to Lidl it will bring more jobs into the town

Your right the more that move into Bulgaria the more jobs and the better the economy

More good news :Clap:lets keep it like this and Bulgaria will soon rise out of the ashes