Last year was the first when four retailers (Kaufland, Carrefour, Auchan and Lidl) overshot the EUR1 billion mark, according to the ZF estimates and the already announced results.
Modern retail in Romania numbers 12 networks, one third of which has already reached EUR1 billion sales. The smallest ones have already been bought (such as Billa, which went to Carrefour in a deal that is awaiting approval from the Competition Council), or are looking for buyers (Real and Cora, ZF has found).
The market was close to EUR10 billion last year, according to ZF estimates, as the top ten players posted about EUR9.6 billion sales, up from EUR8.2 billion in 2014. Overall sales increased by 17% more than the consumer spending growth, which means foreign players continued to erode the market share of traditional retail.
Last year’s developments, the most important of which was the expansion of some of the retailers, led to changes in the retailer ranking. French-held Auchan entered the top three, while Lidl climbed to fourth just four years from officially entering Romania. Metro Cash&Carry fell from three to five, following a new decline in sales. Metro Cash&Carry data are valid for its financial 2015 and 2014, which start on October 1 and end September 30. The figures were published in its financial reports.
The top spot remained unchanged, with Kaufland consolidating its leading position, thanks to a 33% rise in sales. The discount hypermarket chain posted 10.7 billion lei (EUR2.4 billion) revenue in 2015 and became the first to reach this milestone in Romania.
Profi and Mega Image, too, posted spectacular growth, according to the results the two announced. Moreover, Penny Market officials even said the 13% rise in sales in Romania was the highest of the whole group.
A factor in this performance was the food VAT cut from 24% to 9% as of June 1, 2015, which drove spending on such products up 20% between June and December, according to the National Statistics Institute.
The rising consumer spending encouraged most or the modern retailers to continue expansion, so the 12 networks opened almost 200 new stores, expanding at the same pace as in the last few years. They spend EUR130 million to EUR180 million to take the number of modern retail stores to almost 1,700, according to ZF estimates. (EUR1=RON4.4864)
(English version by Loredana Fratila-Cristescu)