The N.K. Shacolas Group confirmed press reports that it is engaged in advance negotiations with Carrefour for the possibility of a strategic cooperation, which will pave the way for the expansion of Carrefour into Nicosia.
The report confirmed an earlier report in the Financial Mirror published a month ago regarding the prospects of Carrefour securing a presence in the Shacolas Emporium Park on the outskirts of Nicosia.
The report was fine tuned by Politis newspaper, which was confirmed by the group, promising more details in January.
The agreement between the Group and the strategic partner according to an official announcement by NKS involves the use of a large commercial area in the under construction shopping mall at the Engomi area (owned
by Woolworth Properties.
Under the deal, the group would also lease a large portion of the premises of its shopping mall currently under construction outside Nicosia, near the new Nicosia general hospital. The mall, known as Shacolas Emporium Park, is due to open in 2007. (owned by ITTL Trade Tourist and Leisure Park Ltd, a subsidiary of FWW).
The multinational aims to enter the retail sector with the establishment of large supermarket stores thus covering a large area in Nicosia.
The above corporate development will yield the Group a guaranteed annual revenue and commission on sales generated from the use of the above spaces.
Additionally, the agreement provides that the multinational will supply the food stores of Ermes Department Stores Ltd with the whole range of the former’s products thus safeguarding a minimum guaranteed profit margin for a long period of time.
All three companies of the group including FWW, CTC and Ermes Department Stores are expected to be positively affected by the terms of the possible strategic cooperation.
Carrefour entered the Cyprus market last year through its Greek partner Carefour-Marinopoulos after it acquired the share capital of Chris Cash & Carry, the second largest supermarket chain in Cyprus. The group has three Hypermarkets and three supermarkets with a strong presence in Limassol and Paphos, but lacking a presence in Nicosia, the largest retail market.
Meanwhile NKS denied the Politis report of an imminent agreement for the sale of ITTL stock, as well as reports that the deal with the foreign concern was aimed at solving cash-flow problems.
Referring to the 4c per share dividend declared out of the 2003 profits of F.W. Woolworth, the group said that if it did not pay the dividend to shareholders, the it would save a high defence tax bill, and this was the reason why it decided to share the reserves with shareholders.
