Max Stock is preparing to enter the Portuguese and Spanish market, in partnership with Fortera Properties.
The store chain Max Stock is preparing to enter the Portuguese market through a joint venture with Fortera Properties, announced the company on Tuesday.
According to the Israeli chain’s board of directors, the joint venture will be based in Portugal and be jointly owned by Max Stock, with a 75% stake, and Fortera, which will hold the remaining 25%. The agreement also includes the development and management of a chain of Max Stock stores in Portugal and Spain.
The chain of stores will initially be established in Portugal before being expanded to Spain.
The project’s initial investment is estimated at €5 million, 87.5% of which will be supported by Max Stock, with Fortera Properties providing the remaining 12.5%.
According to Max Stock, the discount retail space in Portugal has yet to be exploited, while in Spain this segment is mainly managed by private establishments, non-chain street stores and grocery chains that sell non-food products. For the Israeli company, the potential of the Portuguese market, coupled with a “relatively low” GDP and minimum wage, will help the company create demand in this sector.
Max Stock has a total of 50 units in Israel, where it sells over 10,000 products, from toys to accessories, kitchen or gardening utensils.