In traditional formats, discounters are gaining ever more market share.
The retail market registered limited deliveries in the first half of 2022, with just two projects, totaling around 27,000 square meters, being completed, in line with Colliers report.
In terms of consumption structure, Colliers consultants point out that clothes and footwear sales accelerated in the first half of this year and purchases of various electronics and electrical home appliances had a good evolution. On the other hand, the category of home renovation, refurbishment and décor items stabilized in the past quarters. E-commerce also peaked, being currently just slightly below the 2021 level.
Overall, while retailers’ sales of non-food items are likely to stagnate or follow a downward trend in the second half of the year, the profitability of Romania’s retailers is among one of the best in the EU.
The high returns the local market is offering retailers, doubled by the rapid rebound of non-food item sales in the past months, have put Romania back on retailers’ map.
Shopping center vacancy level is relatively low in most cases. As regards rents, while the basic level is flat, the situation has gradually come back to normal.
‘Currently there are over 100,000 square meters of new retail projects due to be delivered in the second half of the year, but on the medium term larger projects are shaping up. Still, despite these new deliveries, Romania, with its over 4 million square meters of shopping centers and retail parks, is still a market with an undersized supply,” according to Simina Niculita.
As our market still hosts a relatively limited number of brands compared to other countries in the region, this domestic context still secures limited competition among retailers and can account for why Romania offers some of the highest sales averages in the EU. Therefore, Colliers consultants expect Romania’s market to remain attractive and new brands to arrive in the coming years.
(English version by Catalina Apostoiu)