Germany's REWE Pulls out PENNY Discounter from Bulgaria

Germany's supermarket group REWE said on Wednesday it will withdraw completely from discount business in Bulgaria with all PENNY stores ceasing to operate by the end of next month.

REWE Group will focus on full-range store business with PENNY's sister company BILLA Bulgaria taking over the logistics centre in Stolnik near Sofia and - where possible - some of the current 49 PENNY outlets in the country, REWE said in a statement.

"Where possible, PENNY employees will be offered a continued employment at BILLA Bulgaria," the statement read. "The employees who cannot be offered employment opportunities will receive severance pay in excess of that required by law."

Currently, REWE operates 92 BILLA supermarkets in Bulgaria.

In the future, the REWE Group will focus its international discount activities with PENNY on business in the other five countries where it currently operates: Austria, the Czech Republic, Hungary, Italy and Romania.

PENNY opened its first discount store in Bulgaria in 2009.