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Wednesday, February 14, 2007

West Ukrainian retailer Rovex goes to cash&carry market

Rovex goes to a segment cash & carry. One of the biggest retailer in the Western Ukraine, Rovex expands in a new segment. The company is going to complete the construction of the first shopping centre in Ternopil by the end of the year. Funding for the project will be received through bond issues for UAH 6 mln., as well as bank loans.

According to market analysis, a construction a cash & carry centre (from K12 to K17 sq. m.) costs approximately UAH 120 mln. (USD 24 mln.) , with PB about 8-10 years.
In the Western Ukraine Rovex did not face significant competition from national retail chains, who are don't go to the region due to the low citizens' purchasing power .

At Western Ukraine average check retailers two to three times less than in Kiev, about UAH 10 in hypermarkets and 5 UAH in the discounters.

According to the Renaissance Capital Ukraine, retail market the western region of Ukraine in 2006 amounted to UAH 15.073 bln. (12% of the Ukrainian market). The largest operators in the region are "Intermarket, Rovex, Pakko", "Nash kray (Our Land)" and "Agrocontrakt.