Czech online supermarket Rohlik.cz has announced its launch in Hungary as Kifli.hu, local media reported on January 28.
Hungary is the first market outside the Czech Republic for the group, which wants to expand to new markets in the future, possibly to Germany, majority owner Tomas Cupr said in December.
The online supermarket, branded "crescent roll" in Hungarian, like the name of its Czech peer, is delivering to Budapest and Budaors, on the outskirts of the capital, but plans to broaden its geographical market later.
Rohlik.cz is ploughing €5mn-6mn into its Hungarian business and expects to recoup that investment by 2022.
Kifli.hu targets a daily 2,000 orders by year-end, bringing annual turnover to HUF4bn-5bn (€11.9mn-14.8mn).
Rohlik.cz was established in Prague five years ago. It now processes 7,000-8,000 orders a day and has annual sales of €180mn.
The company's net profit amounted to CZK108,000 (€4,233) in 2018, while in the previous accounting period the company posted a loss of CZK102mn. This year, according to Cupr, the e-shop should record a turnover of CZK4.5bn.
Rohlik.cz will face stiff competition from Hungary's largest retailers. Spar, Tesco, and Auchan have all launched online delivery in the last couple of years.