The emerging markets in CE, SE and Eastern Europe include Romania, Poland, Hungary, Turkey, Serbia.

The emerging markets in CE, SE and Eastern Europe include Romania, Poland, Hungary, Turkey, Serbia.
The emerging markets in CE, SE and Eastern Europe include Romania, Poland, Hungary, Turkey, Serbia, Lithuania.

Monday, 19 October 2015

Modern retail and domestic consumption continue to grow in Romania in 2015

Overall, in the first half of 2015, the Romanian economy grew by 3.7% y / y, the advance of domestic demand (contribution 5.2 pp) counterbalancing the negative contribution of net external demand (1.5 percentage points). Private consumption (the main component of GDP) increased by 5.4% y / y (contribution 3.5 percentage points to annual GDP growth), supported by the VAT reduction for food products and services, rising wages and relaxation of lending in local currency (RON).

According to the Romanian Association of Major Retailers (AMRCR), the retail trade output accounted for 15.8% of Romania's GDP last year, having good grounds for grows in the short to medium term. At the same time, 22.17% of total employment in 2013 in Romania is in trade activities.

According to the latest data available (2013), there were a total of 126,771 stores in Romania. Most of these, namely 118 581, are stores small area of ​​less than 120 square meters.

Modern trade accounted for about 25% of the sales surface in Romania in 2013, while 44.5% of the sales surface is covered by traditional trade and 30.5% by HoReCa.

Modern trade will increase this year and will reach 55% of total turnover, compared with 45% generated by traditional trade, while in 2014 the ratio stood at 54% for large retailers and 46% for those in the traditional trade.

Among major retailers, Kaufland (23.68%), Carrefour (13.5%) and Metro (13.29%) have the highest share in the cumulated turnover of more than 9 billion registered in 2014 by the AMRCR members. The association brings together major retailers in Romania, with a combined turnover of 9.06 billion euros last year, and over 75,000 employees.

Modern retail will continue the positive trend of recent years and will grow in 2015 at the expense of traditional trade, rising to 55% of total business.

89% of the Romanians have a good and very good opinion about modern retail stores (56.6% good and 32.4% very good), which is are a favorite place for shopping for 83.6% of those surveyed, while 65.2% of the Romanians prefer to shop in convenience stores and 45.2% prefer the markets.

Price continues to be the key element in choosing the shopping location(75.2%), while for a significant percentage, while for 65.1% of the Romanians, the main criterion is the quality of the products and for 58% is the store's distance from home.

According to FRD Center analysis, the major modern retail supermarket and hypermarket chains operating in Romania that also sell food products are:

Auchan
Chain: 33 Auchan hypermarkets
Net turnover: 848 million EUR in 2014
No of employees: 9,344 in 2014
Ownership: Auchan Group France

Billa
Chain: 86 Billa supermarkets
Net turnover: 317 million EUR in 2014
No of employees: 3,168 in 2014
Ownership: REWE Group Germany

Carrefour
Chain: 28 Carrefour hypermarkets, 98 Market supermarkets, 43 Express proximity stores and 10 Contact proximity stores
Net turnover: 1 billion EUR in 2014
No of employees: 7,284 in 2014
Ownership: Carrefour Group France

Cora (Romania Hypermarche)
Chain: 12 Cora hypermarkets
Net turnover: 385 million EUR in 2014
No of employees: 4,818 in 2014
Ownership: Louis Delhaize Group

Kaufland
Chain: 103 Kaufland hypermarkets
Net turnover: 1.8 billion EUR in 2014
No of employees: 12,180 in 2014
Ownership: Schwarz Group Germany

Lidl
Chain: 188 Lidl stores
Net turnover: over 750,000,000 EUR in 2014 (estimate)
No of employees: n/a
Ownership: Schwarz Group Germany

Mega Image
Chain: approximately 420 stores (under the brands Mega Image, Shop&Go, AB Cool Food, Mega Drive)
Net turnover: 634 million EUR in 2014
No of employees: 7,161 in 2014
Ownership: Delhaize Group Belgium

Metro Cash & Carry
Chain: 32 Metro stores
Net turnover: 1 billion EUR in 2014
No of employees: 5,125 in 2014
Ownership: Metro Group Germany

REWE Romania
Chain: over 170 discount stores, under the brands Penny Market and XXL Mega Discount
Net turnover: 525 million EUR in 2014
No of employees: 3,079 in 2014
Ownership: REWE Group Germany

Profi Rom Food
Chain: 347 Profi stores
Net turnover: 415 million in 2014
No of employees: 5,672 in 2014
Ownership: Enterprise Investors

Selgros Cash & Carry
Chain: 19 Selgros stores
Net turnover: 637 million EUR in 2014
No of employees: 3,882 in 2014
Ownership: Coop Switzerland

For tailor-made market research and opportunity analysis, acqusition target search, as well as B2B matchmaking with players in Romania and the emerging markets in Europe, feel free to contact FRD Center team at: 
email: europa@frdcenter.ro or tel: +4021 411 1459/ 60/ 61

FRD Center provides market research in Eastern Europe and the region, B2B matchmaking in the CE Europe and SEE, M&A assistance in Romania, in CEE and SEE

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