Arhelan will join Eurocash Group
Eurocash Group has announced the acquisition of a 50% stake in the company operating the Arhelan chain of shops. The company operates over 100 shops and is active mainly in Podlaskie Voivodship.
Ultimately, Arhelan shops will operate within the franchise structures of Delikatesy Centrum, under the logo Delikatesy Centrum and Polskie Sklepy Arhelan. Initially, Eurocash will acquire a 49% stake, with the remaining 1% to be acquired at a later date.
Arhelan operates a chain of over 100 shops under the Polskie Sklepy Arhelan brand. It launched more than 30 new outlets between 2018 and 2020. The chain was founded in 1991 in Bielsk Podlaski by the family of Mr and Mrs Burzynski. It operates mainly in Podlaskie voivodeship, but also in Warminsko-Mazurskie, Mazowieckie and Lubelskie voivodeships. In 2020 the chain’s revenues amounted to over PLN 500m. The average area of a shop is 370 sq m.
The transaction must be approved by UOKiK.
PMR expert’s view
Retail Business Unit Director
At the end of 2020. Eurocash Group has announced an updated growth strategy for the Delikatesy Centrum chain. It is to grow to 2,400 outlets in the next 4-5 years, compared to 1,545 shops at the end of 2020. The growth is to be achieved through the opening of franchise shops and own shops (in cooperation with partners investing in real estate) and through acquisitions of regional supermarket chains.
The acquisition of a stake in the Arhelan chain therefore fits perfectly into this strategy. The addition of Arhelan means not only a numerical increase of over 100 outlets, but also a strengthening of Eurocash’s position in north-eastern Poland. Both companies have known each other for a long time, as Arhelan has been cooperating with Eurocash for years in the area of wholesale supplies. Arhelan’s strengths include its 30-year market presence and knowledge of the local specifics. On the part of Eurocash, the chain may count on logistic, marketing and digital support.