“The economic context is the main factor that holds consumption back. Consumers are increasingly cautious as they face uncertainties, among which the most significant is the one to do with income,” said Melchior de Polignac, who runs the around 5 billion-lei business of Carrefour in Romania. He explained that it is difficult to predict how consumption will evolve in the coming period.
In the first six months of the year turnover in retail, the main indicator for the population’s spending – fell by 0.4% as adjusted series against the similar period of last year. Consumption was the driver of the economy during the boom years. But after being strongly affected during the crisis years, consumption will now be the last sector to recover, 6 to 12 months after lending and the overall economy do.
“We cannot talk about major changes in consumer behavior against last year, but there is still an orientation towards private label products, Romanian products, consumers actively seek discounts and the lowest prices.” Carrefour estimates the share of private label products will increase towards 14-15% by the end of the year, from 13% at present.
Carrefour had a turnover of RON5 billion (EUR1.12 billion) in Romania last year, up by around ten percent against the previous year. The figure includes the results of Carrefour Romania and of Artima.
Despite the consumption decline in the past few years, retailers have continued to invest.
Carrefour now has 124 stores from 40 at the end of 2008.
“In the first months we opened 4 supermarkets and 11 Express convenience stores. This year we will continue expansion on the supermarket format and on the segment of franchised convenience stores, but we will also open a hypermarket in Galati at the end of the year.”
This will be Carrefour’s first large-format opening in the past two years, with the store to be located within the Shopping City Galati mall developed by South-African NEPI.
Carrefour, which has on the Romanian market 24 hypermarkets, 69 supermarkets, 30 convenience stores and an online store, does not provide details on the number of stores it will open by the end of the year.
But previously Melchior de Polignac had said the chain would keep the 2012 expansion rate. Last year 21 supermarkets were opened and 16 convenience stores.
(English version by Daniela Stoican)