Mercator Wants to Remain Market Leader in Slovenia

Ljubljana, 04 January

The new management board of Slovenia's leading grocer, Mercator, met with the press on Wednesday in Ljubljana. According to chairman Ziga Debeljak, the company wants to remain the leader on the Slovenian grocery market by holding on to its 40% market share.

The company also wants to become the leading grocer in the markets of the former Yugoslavia, reaching a 12% share in Croatia, 10% in Serbia-Montenegro and 5% in Bosnia-Herzegovina, Debeljak told the press.
According to Debeljak, the current market share of Mercator in the above-mentioned countries is fairly low, standing at 4% in Croatia, 2% in Bosnia-Herzegovina and 1% in Serbia-Montenegro.
By 2010 Mercator wants to reach a steady 5% annual growth in euro-based revenues, although strategic partnerships could increase this number.
"Our rate of investment will remain at between EUR 120m and 150m a year, and will be divided equally among all of our four key markets," Debeljak added at a press conference.
Mercator will also continue with its policy of cooperation with Slovenian suppliers. "Our shops currently stock between 70% to 75% of Slovenian products," Debeljak explained.
He also added that the company will present its business results for 2005 and plans for 2006 by late January or early February.
Debeljak also praised the previous management of Mercator, which enabled Slovenia's leading grocer to develop successfully. Two members of the previous management board will also continue to work with the current board, he told the press.
Meanwhile board member Peter Zavrl explained that Mercator will take part in a constitutional challenge against the law that bans shops from keeping Sunday opening hours.
However, the new law, which has been vetoed by the upper chamber of parliament, first "has to be re-passed [by parliament]".
Apart from Debeljak, who will also be in charge of development and investment, IT, and finance, controlling and accounting, the board is made up of Vera Aljancic Falez (personnel, organisation, legal and general affairs); Mateja Jesenek (marketing and procurement); and Peter Zavrl (retail, wholesale and logistics).
Mercator has also increased its share capital by SIT 24.4bn (EUR 102m) to a total of SIT 33.56bn (EUR 140m). The increase was already entered into the Ljubljana district court registry on December 28 last year, the company said on Wednesday.
According to Mercator's press release, two out of the four buyers have already fully paid for their stakes.
The Pension Fund Management (KAD) bought 106,950 Mercator shares for SIT 4bn (EUR 16.69m), while the KLM company, owned by the Mercator management board, paid SIT 1.56bn (EUR 6.51m) for 40,700 shares.
However, KLM will have to pay additional SIT 10.63bn (44.36m) by 31 January for the remaining 280,150 shares. By the same date, investment firm KD Group will also pay for its 106,650 shares.
Meanwhile the Restitution Fund (SOD) already paid its stake of 106,650 shares in December.
Mercator issued a total of 641,700 new shares with a nominal value of SIT 10,000 (EUR 41.74). The shares were sold at SIT 38,000 (EUR 158.61).

Mercator Wants to Remain Market Leader in Slovenia

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