Rural areas have so far been the battleground of small merchants, of universal stores. In recent years, though, Germany’s Metro Cash&Carry launched the LaDoiPasi franchise, which has reached over 600 stores, many of them in rural areas. These stores are operated by entrepreneurs and Metro gets only a tax from them.
Mega Image also went to rural areas, but only in the localities close to Bucharest.
Carrefour Contact stores are proximity stores, just like Express, but the latter is the format with which the French group tapped urban areas.
“Contact is Carrefour’s franchise for rural peri-urban areas. The format plays the role of universal stores of old, with a wide, but not deep product range (not many brands for the same product category i.e.),” says Andreea Mihai, marketing manager of the French group.
Contact format was launched in Romania this year, six years after it was launched in France, and has already reached six stores. “We opened units in Harman (Brasov), Mizil (Prahova county), Ivesti (Galati county), Harsova (Constanta county), Fetesti (Ialomita county) and Pechea (Galati county)”.
Carrefour officials did not provide further details on the group’s plans for this brand. In the case of Express, the network reached 44 stores in around two years and a half since launch. Carrefour also owns 25 hypermarkets, 79 Market supermarkets and an online store in Romania.
Carrefour group ended 2013 with net sales of EUR1.006 billion, up 2% on the year. The increase came as the company opened 54 stores. However, the group’s officials did not report like-for-like sales, which do not take into account expansion.
The best year for Carrefour business in Romania is 2008, when, with a network of just 40 stores, the group generated sales of EUR1.19 billion. At that time, though, consumption was rising by almost 10%.
Today, with a four times wider network, the company has almost 15% lower net sales.
In 2009-2013, the company invested over EUR100 million in store openings, according with ZF estimates.
(English version by Catalina Apostoiu)