THE supermarket sector in Bulgaria is attracting increasing international interest, as this week German chain Kaufland confirmed its plans to enter the Bulgarian market.

After Metro, Billa, Fantastico and Oasis this is the third international market chain to fight for a share in the consumer consumption market.

Plans for a potential entry to Bulgaria were first spelled out two months ago. This week, Shumen Mayor Vesselin Zlatev announced Kaufland's intentions to establish a supermarket in the town. The main consumer items would be white goods, industrial and food products, he said.

During the preliminary talks, representatives from Kaufland reportedly demanded a central city location of 18 decares, on which the building and parking for more than 200 cars would be situated. The site would be of a small size by the standards of the chain and would give jobs to 160 to 170 people.

The main requirement of the company has been to have excellent communications and adjoining infrastructure to the site. Zlatev noted that among the several proposed sites, Kaufland preferred a former military unit covering 57 decares.

Zlatev said that because of time-consuming bureaucratic procedures, Shumen had missed a number of serious investors and, in this connection, Zlatev would seek for a quick authorisation of the site's purchase from Defence Minister Nikolai Svinarov.

As Zlatev put it, the entry of the German chain would be key to the solution of a number of economic and social issues in the city.

Signs of competition in the supermarket sector came from Billa. In early February, the management of the plant announced an ambitious several-year expansion programme. Sources from Billa said that this year the company would open another five outlets in Sofia, Plovdiv, Varna and Pleven with an investment of more than 20 million euro. They also said it was step one of doing business in towns with populations of more than 80 000.

So far, Billa has invested more than 50 million euro in a total of nine hypermarkets since its entry to the Bulgarian market in October, 2000. Its locations are in Sofia, Plovdiv, Bourgas, Stara Zagora, Pazardjik, Sliven and Shoumen.

Billa is rated 65th of the top 100 companies in the country and is among the fastest growing companies in the country with over 650 per cent year-on-year growth in 2001 compared with 2000 due to its small mark-ups, high turnover and proximity of sites. In 2001, Billa realised 85.1 million leva, up 11.3 million leva from 2000.

Experts say that the increasing interest of chains such as Kaufland and the French Carrefour have been prompted by the flying start of Billa.

Experts predicted that Kaufland's pilot project in Shoumen would be a test for a potential further expansion in the bigger cities in the country.