German discount store chain Penny Market announced plans to build a five-million-euro hypermarket in the town of Shoumen, company representative Miroslav Boulva told municipal councillors, as quoted by Dnevnik daily.

The company plans to buy 4000 sq m in the area of the former commercial-industrial zone in Shoumen, of which 1000 sq m will be used for the building itself and the remainder for the construction of 250 parking places.

The hypermarket will cater to budget customers and will sell primarily Bulgarian food and non-food goods. Nearby, the company plans to build a large warehouse, its second after the one in Sofia.

Penny Market is owned by German concern Rewe, which is also present in Bulgaria through another of its brands, Billa. Penny Market will compete directly with its German peer Kaufland and Bulgaria’s Elemag, Piccadilly, Fantastico, among others.

Penny Market is the second chain to announce construction of a new store in Bulgaria in less than a week, with Metro Cash&Carry Bulgaria, the local arm of German retailer Metro AG, confirming that it would open its tenth hypermarket in Bulgaria in fall.

The store in Pleven would sprawl over 7000 sq m and would have 400 parking spots, Metro officials said.