In 2017, modern retail chains opened more than 350 stores, most of which in rural areas, a trend to be kept in 2018 too and which also determines the adjustment of store formats, according to an analysis by Euler Hermes, a division of Allianz.
For the second consecutive year, Profi was leader in terms of expansion, with nearly 200 stores newly opened in 2017, an all store formats, but mostly on Profi Loco. Profi also ranks first by the number of stores, followed by Mega Image, which slowed down its expansion rate in 2017, and Carrefour, which integrated Billa stores.
In general, retailers bet on discount and convenience stores. Mega Image opened stores outside of capital Bucharest too, Carrefour extended the “Carrefour Market” concept, Auchan joined gas station chains with “My Auchan” stores and Metro expanded the “La Doi Pași” chain.
As regards the trends in 2018, Euler Hermes notes that retailers focus more and more on townships with fewer than 15,000 inhabitants and adjust their store formats. For instance, the usual surface area of a Kaufland store stands at 4,500 square meters, while the new store formats start from 2,000 sqm.
Retailers’ expansion plans continue in 2018 with a target of 1,000 stores for Profi and ten new stores announced by Kaufland whose investment budget is double compared with 2017, namely, of EUR200 million.
According to Euler Hermes, the Romanian modern retail market reached EUR17-20 billion, considering that 2017 was a very good year for consumption, with an increase of over 10% in trade sales due to wage raises, a higher pension point, reduced taxation and the elimination of the over-excise on fuels.