Thus, in 2014 alone Fonzi network closed down all its seven non-stop supermarkets and the 44-store network of Oncos poultry producer and distributor went insolvent.
In the same year, Profi supermarket chain took over two of Cris-Tim’s spaces and Angst exited Carrefour’s franchise to focus on cold cuts production and trade.
In recent years, marked by the crisis and the aggressive expansion of international chains, around 70,000 small merchants have vanished, according to data previously provided by Metro representatives. Now, around 70-80,000 small merchants are left on the market valued at around EUR8 billion (not including HoReCa players).
The market has in recent years seen international chains also launch proximity stores under brands such as Express (Carrefour) or Shop&Go (Mega Image). Carrefour, for instance, is expanding on this format through partnerships with domestic stores. The first such partnership was forged in the autumn of 2011 with Angst.
However, Angst recently decided to exit the partnership. “In this challenging period, when consumption is still slumping, we decided to focus on what we can do best,” says Sorin Minea, president of Angst and one of its stakeholders.
He also specified all the 22 stores of the network will operate further, but under the company’s own brand, with Angst being set to open new units if opportunities arise. Minea does not put forward any figures, saying the overall market is now undergoing a difficult period.
Times are the harder for small store chains as they do not benefit from the financial support of some foreign parent companies. Moreover, they lack international retailers’ negotiation force.
“Romanian retailers lack the financial strength to battle international chains. We decided to rent the spaces of our stores to Profi after Lidl, Carrefour and Kaufland opened stores in Botosani,” said around half a year ago Florentin Bidasca, the entrepreneur who controls 50% in Pita.
Another Romanian network that surrendered to the crisis and foreign chains is Fonzi, which included seven supermarkets in Bucharest. The shareholders, two Romanian entrepreneurs, recently characterized international chains’ expansion as “unhealthy”.
In recent years, foreign retail networks have opened between 150 and 250 stores per year. To be able to survive on the market, many domestic entrepreneurs have decided to go under the umbrella of an international franchise.
(English version by Catalina Apostoiu)