AIKO to invest BGN 117 mln in Bulgaria over the next five years

The domestic furniture chain AIKO plans to invest BGN 117 mln in new showrooms in Bulgaria over the next five years, the company announced. The first new store in Burgas, in which BGN 39 mln has been invested, is expected to open doors next month. The chain will build new furniture showrooms in the cities of Varna, Plovdiv and again in Sofia. With a view to the expansion of its operation, AIKO has changed its logo which will now be written in Latin letters.

In the long term, the company is considering a development strategy targeting foreign markets. Until now, foreign customers have accounted for just a small percentage of its clientele. “Cheaper furniture is mostly sought on the Bulgarian market, the consumer basket of buyers has decreased by some 8% and the annual potential of the market in Sofia is about BGN 600 mln,” said the company’s Marketing Manager Peter Vassilev. Since 2008, AIKO has increased its market share in Sofia from 15% to 22% and its turnover for the last few years was about BGN 200 mln.

“The stepping of IKEA on our market will boost the development of the furniture market in Bulgaria,” added Vassilev.