Bosnian company Bingo is expected to become the largest retail chain in the country this year, according to an analysis by BiznisInfo website.
For the first time, total revenue of Bingo is expected to exceed that of Croatian retailer Konzum in Bosnia and Herzegovina.
It will be the first time that one Bosnian company becomes a leader in retail market.
According to data for the last year, Bingo Tuzla had a total income of 803,433,657 KM, while Konzum recorded revenues in the amount of 849,962,319 KM.
However, revenues of Bingo increased by as much as 42 percent, while revenues of Konzum grew by 22 percent, according to research conducted by the company LRC (LRCBIS) from Sarajevo.
If this trend continues, Bingo will overtake Konzum as retailer with the biggest amount of total revenues this year.
There are several indicators that Bingo will record similar growth this year. Bingo continued its expansion, while Konzum is stagnating and has even closed some stores.
Let us mention just a few of the new Bingo’s projects: The opening of a large market within the Retail Park in Derventa; building of the Bingo shopping center in Jajce; opening of its biggest store ever – Bingo City Centre in Tuzla on nearly 40,000 square meters …
While Bingo is expanding, Konzum is stagnating and has even closed some shops. For example, it closed one store at Dzemala Bijedica Street in Sarajevo.
In addition, one of the biggest Konzum stores in Sarajevo, in Alipasino Polje, which was burned down in May this year, has not been renewed, and its reconstruction has not even began.
Konzum has not responded to the request by BiznisInfo to say how many stores they opened and how many they closed this year.
Bingo won the hearts of customers by low prices and its support for the local economy. There is also another advantage that allowed its rapid expansion.
For years, Bingo has a much higher profit than Konzum. For example, in 2014 profit of Konzum was only 4,376,400 KM, while profit of Bingo was nearly ten times higher and amounted to 40,228,294 KM.
This means that Bingo has a lot more space for new investments and business expansion than is the case with the Croatian chain.
In addition, the owner of Bingo Senad Dzambic once said that he reinvests all the profits.
– I do not collect the money and do not deposit it in foreign banks. Everything we earn, we immediately invest in order to expand further. We wish to have our facility in every corner of BiH – Dzambic said in an interview last year.