J.Martins cuts planned store openings in Portugal, Poland due to Plus deal

LISBON (Thomson Financial) - Jeronimo Martins SGPS said that it will open less stores in Portugal and Poland due to the integration of the recently acquired Plus discount chain in both countries.

Speaking at a press conference following full-year results yesterday after the close, J.Martins CEO Luis Palha da Silva said that the Plus integration is the reason why the company now expects to open about 70-100 new stores in Poland in 2008, down from earlier estimates indicating about 130 new openings in Poland per year to 2010.

In Portugal, the company now expects to open about 10 new Pingo Doce stores in 2008, down from previous estimates of about 20 per year by 2010.

'We are not going to be able to see in Poland and in Portugal the same expansion drive due to the integration of the Plus stores,' said Palha da Silva.

Palha da Silva added that he expects regulators in Portugal and Poland to approve the Plus acquisition in the second quarter of 2008.

He also said that the likelihood of J.Martins expanding to new geographies in 2008 was now also reduced due to the effort of integrating the Plus stores.

The retail group acquired the Plus discount chain in Portugal and Poland from Tengelmann in December 2007 for about 320 mln eur.

The Plus chain comprises 75 stores in Portugal and 210 stores in Poland.

The group owns about 1,045 Biedronka stores in Poland and about 225 Pingo Doce stores in Portugal.

Source: forbes.com