Why Kosovo’s Biggest Retail and Service Brands Are Rapidly Expanding into Albania in 2025

 The Albanian retail market has become one of the most attractive destinations for Kosovo’s largest companies, which are expanding faster than ever into sectors such as supermarkets, fashion, hospitality, and franchise dining. With Albania’s tourism boom, rising foreign spending, and a shared language market, businesses from Kosovo see an unprecedented opportunity to capture new consumer bases and fill gaps in organized retail.

Why Kosovo’s Biggest Retail and Service Brands Are Rapidly Expanding into Albania in 2025

In recent years, Kosovar enterprises have shown stronger experience, better organization, and faster development in modern retail compared to Albania. Now, they are moving quickly to take advantage of the open space and growing demand in Albania’s consumer market.

A Tourism-Driven Boost: Why Albania Attracts Kosovar Businesses

Albania’s transformation into a major regional tourist destination has been a game-changer. Record numbers of foreign visitors have increased national consumption, especially in hospitality, retail, and fast-food sectors. For many Kosovar companies, this rising demand provides a stable foundation for rapid expansion.

Retail brands from Kosovo see Albania not only as a neighboring country but as part of the same linguistic and cultural space — making brand penetration easier, marketing more effective, and customer loyalty stronger.

Major 2025 Deals: Kosovo Companies Making Big Moves in Albania

Viva Fresh Store Acquires SPAR Albania for €36.4 Million

At the end of March 2025, Kosovo-based Viva Fresh Store announced one of the largest cross-border retail acquisitions in Albanian history: the purchase of SPAR Albania from the BALFIN Group for €36.4 million.

Soon after, the European Bank for Reconstruction and Development (EBRD) and the Enterprise Expansion Fund II (ENEF II), under the EU’s Western Balkans Investment Framework, pledged €25 million in financing to support the acquisition.

  • EBRD: €22 million

  • ENEF II: €3 million

This became the largest loan EBRD has ever provided to a company registered in Kosovo. Viva Fresh plans to expand aggressively in Albania by opening new stores and upgrading the existing SPAR network.

Albi Holding Purchases Fashion Group Albania

In September 2025, Kosovar company Albi Holding acquired Fashion Group Albania from BALFIN for €7.6 million.
Albi already manages international fashion brands across Kosovo and the region, including:
Mango, Springfield, Celio, Okaidi, Gant, Geox, Timberland, Hugo Boss, Parfois, Dan John, UGG, Plein Sport, and more.

This purchase strengthens the presence of Kosovar fashion retail in Albania and consolidates a regional network of international brands.

KAN Takes Over KFC Albania, Plans 20 New Locations

In October 2025, Kosovo-based KAN, operator of 35 fast-food restaurants and employer of 1,000 people across the region, officially took ownership of KFC Albania from Global Fast Food Albania (previously owned by UAE-registered TP Investment Limited).

KAN announced plans to open 20 new KFC locations across Albania, significantly expanding the country’s fast-food landscape.

The company, owned by entrepreneur Fatmir Zymberi, already operates the Danish brand JYSK in Albania through its subsidiary “Scandinavian Living.”

By the end of 2024, Global Fast Food Albania reported:

  • Revenue: 1.44 billion ALL (↑18% YoY)

  • Net profit: 141 million ALL (↑23% YoY)

  • 13 active restaurants, including 11 KFC and 2 Pizza Hut locations.

Why Kosovo Companies Are Leaving or Expanding Beyond Their Home Market

According to prominent Kosovar businessman Ramiz Kelmendi, owner of ELKOS/ETC, interest in Albania has always existed — but current economic and political instability in Kosovo has accelerated the shift.

Kelmendi highlights several key issues:

  • Kosovo currently lacks stable governmental institutions

  • Frequent elections and political uncertainty

  • Business-unfriendly regulations

  • Perception that government policies hinder rather than support businesses

As a result, some companies are not only expanding but fully relocating operations to Albania.

Structural Challenges in Kosovo: A Push Factor

Kushtrim Ahmeti, Director at the Kosovo Chamber of Commerce, states that Albanian incentives — official or unofficial — are attracting companies, while Kosovo’s business environment has become more difficult.

Key challenges include:

  • The Public Property Law blocking many companies

  • A 16.1% increase in electricity prices

  • Poorly executed energy market liberalization

  • Higher production costs

  • Reduced manufacturing power

  • Frozen investment plans due to uncertainty

These conditions make Albania a more predictable and profitable market.

Record Investments and Business Growth in Albania

According to the Bank of Albania:

  • Kosovo investments reached €96 million in 2024, up from only €13 million in 2019.

  • In early 2025, investments grew another 50%, reaching €63 million.

  • By the end of 2024, 582 active enterprises with Kosovar capital operated in Albania — a 12% yearly increase and 130% growth over the last decade.

Real Estate: A New Frontier for Kosovar Investors

The Albanian real-estate market is also attracting major attention.
Real estate expert Muhamet Bytyqi explains that Kosovo’s construction market is oversaturated, especially in Prishtina and Ferizaj.

Meanwhile, Albania faces:

  • high demand for housing

  • strong interest from foreigners

  • rising purchases from diaspora

  • dynamic market conditions

Kosovar construction firms are buying stakes in Albanian companies to obtain faster permits and partner with local developers. Political uncertainty and rising energy costs in Kosovo are further motivating this strategic shift.

Conclusion: Albania Becomes the Top Destination for Kosovo’s Expanding Businesses

Kosovo’s largest companies are entering Albania with unprecedented speed and scale.
With Albania’s booming tourism, growing consumer market, and more stable economic environment, this trend is expected to intensify through 2025 and beyond — reshaping the retail, food service, and real estate landscape in both countries.

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