The two halted expansion in 2011 due to the thousands of small traditional stores, their main customers, going out of business in every of the last few years.
“There are a number of reasons why the cash&carry networks did not open any new stores and one of them is the downward trend of the number of traditional retail stores. Another reason is that the big cities in the country with more than 100,000 inhabitants, which such networks usually target, are almost all covered,” says a modern retail executive.
Opening a new Selgros and Metro cash&carry store costs up to EUR20 million, which includes the land and the actual construction of an 8,000 to 10,000 square meter store.
Unlike hypermarkets, supermarkets and discount stores, cash&carry networks target resellers – the small traditional retailers and the hotel, restaurant and catering businesses.
Back in 1996, when Metro Cash&Carry arrived in Romania, there were 160,000 traditional retail stores in business. Now, almost twenty years later, only 70,000 to 80,000 are left.
(English version by Loredana Fratila-Cristescu)