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JM decides on entry into new Easter European markets before 2007
04-03-2005, Diário Económico


Jerónimo Martins will analyse the possibility of business diversification in Poland, having already received proposals from the food industry


Pedro Silva, Director of the Polish hard-discount chain, Biedronka, has announced that Jerónimo Martins (JM) will define its entry into new Eastern European markets before 2007, in order to achieve the goal of geographical expansion from Poland. Ukraine and Slovakia will be two of the priority countries.
Nevertheless, the group's activity consolidation in the Polish market constitutes an immediate goal of JM, which is ready to invest 100m Euros in the chain's stores expansion and distribution centres this year. According to Pedro Silva, the expansion plan includes the opening of 75 stores per year, which will enable the strengthening of Biedronka's position, which now boasts 735 stores, making the company the top ranked hard-discount chain in Poland. The company believes that this market supports 2000 Biedronka stores.
In 2004, Biedronka's sales exceeded 1bn Euros, representing over 1/3 of JM's total revenues in food distribution.
Pedro Silva also said that the other goal before 2007 is "to find new business model opportunities."
Alexandre Soares dos Santos, Chairman of JM, told Reuters "all the plans regarding the future are starting to focus on Poland." He also said that the diversification for the food industry is "a possibility that is being studied," and that, "around September" the company might start analysing this "case".
Despite having represented only 311 million of the 3.5bn gained in 2004, the industrial side is older than the food distribution in Portugal, and has always been defended by Soares dos Santos. JM might, thus, choose to invest in the Polish industry, namely through a local partner. The company has been receiving sales proposals or projects for partnerships. According to the company's official source, these contracts are "natural", since the group "is a strong investor" in this country.