In 2014, six hypermarkets were opened in Bucharest, the highest level since the crisis onset, with four units launched by Kaufland and one store by Auchan and Carrefour each. Kaufland, the leader of modern retail, is as a matter of fact the retailer that owns the biggest number of hypermarkets in Bucharest, reaching 10 units after this year’s expansion. Its stores have 5,000-5,500 square meters on average, therefore being as much as twice as small as rivals’.
While it leads by the number of opened units, Kaufland is not the network boasting the biggest receipts in Bucharest. This position is held by French Carrefour, with revenue ZF puts at some 2.5 billion lei (EUR550 million) per annum with 9 stores in Bucharest. As a matter of fact, Carrefour Orhideea and Carrefour Baneasa are among the best in Romania by sales, each with around RON450 million (EUR100 million).
Next come Auchan Titan and Cora Lujerului, each with over RON450 million (EUR100 million), according to the latest ZF data.
In this context, ZF valued the sales of the four Cora units of Bucharest at some RON1.4 billion (EUR300 million), and those of Auchan at RON1.75 billion (EUR400 million).
“December sales are as much as twice as good as those of a normal month,” says a top executive who preferred to remain anonymous. “December comes to account for 10-15% in sales,” say other market sources.
Thus, the sales of the 31 hypermarkets, most of them opened in districts 5 and 6, will hit RON800 million-RON1 billion (EUR175-225 million) in December, according to ZF calculations based on market data.
Traditionally, December is the best month for retail, being the period when Romanians are more willing to buy foodstuffs and beverages, as well as electroIT products, apparel or cosmetics.
Thus, for hypermarket chains, December comes to account for 10-15% in a whole year’s sales.
Overall, hypermarket chains have invested around half a billion euros in Bucharest. With six openings this year, 2014 is one of the best years for the Bucharest hypermarket market.
The champion of expansion in Bucharest is Kaufland, which almost doubled its network, from 6 to 10 stores this year. The best stores of the network are those of Bucharest, with receipts of EUR30-35 million. Thus, the German network plans to open another 7-8 units in Bucharest. The ten stores opened so far have annual sales of around RON1.3 billion (EUR300 million), according to ZF estimates.
(English version by Catalina Apostoiu)