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FOREIGN CHAINS OF STORES CONTINUE ARRIVING IN CROATIA

ZAGREB, Feb 5 (Hina) - Following last year's opening of four supermarkets of large foreign chains of stores - Austria's Segro and Billa and Italy's Mercatone, another company, Slovenia's Mercator, has announced its arrival on the Croatian market. By the end of May 2001, Mercator should open its hypermarket of some 15,000 square metres in Zagreb, on the model of its five supermarkets in Slovenia. Small-scale merchants in the Croatian Chamber of Crafts' Merchant Guild believe that, should the trend of expansion of foreign chains of stores in Croatia continue, this could soon result in the closing down of small stores, which has already happened in some neighbouring countries. There are 20,000 small stores in Croatia with some 50,000 employees, which, the Guild believes, is a force which has the right to seek its share in Croatia's economy. According to the Guild president, Jadranka Drk, small
ZAGREB, Feb 5 (Hina) - Following last year's opening of four supermarkets of large foreign chains of stores - Austria's Segro and Billa and Italy's Mercatone, another company, Slovenia's Mercator, has announced its arrival on the Croatian market. By the end of May 2001, Mercator should open its hypermarket of some 15,000 square metres in Zagreb, on the model of its five supermarkets in Slovenia. Small-scale merchants in the Croatian Chamber of Crafts' Merchant Guild believe that, should the trend of expansion of foreign chains of stores in Croatia continue, this could soon result in the closing down of small stores, which has already happened in some neighbouring countries. There are 20,000 small stores in Croatia with some 50,000 employees, which, the Guild believes, is a force which has the right to seek its share in Croatia's economy. According to the Guild president, Jadranka Drk, small merchants are not against the arrival of large chains of stores, but they demand that their arrival not be encouraged and that domestic trade and production be stimulated instead. If they want to be given a chance on the market, domestic businesses will have to become larger thus increasing their resistance to foreign competition, the Chamber of Commerce believes. Despite attempts by small-scale businesses to survive on the market, large chains of stores continue to demonstrate interest in investing in the Croatian market. Austria's Billa plans to open another ten supermarkets this year, of which four in Zagreb. The company's final goal is the opening of 25-40 shopping centres and this will depend primarily on the company's business results and the overall economic situation in Croatia. Italy's Mercatone announced that it would open another two centres in Croatia this year, and the latest example is an announcement by Slovenia's Mercator on opening a hypermarket in Zagreb. (hina) rml

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