The 70,000 traditional retailers get the remaining 38%, a survey by market research company GfK shows.
In comparison, the market was equally divided between modern and traditional retailers in 2013, while about a decade ago traditional retailers prevailed, with 60% market share, according to the latest ZF data.
Foreign networks started developed in Romania two decades ago and their development picked up speed in 2005, following the arrival of several big names. Year by year they opened dozens and then hundreds of stores eroding the market share of small traditional retailers. About 300 new stores – mostly small format ones, are scheduled for this year, which would take the modern retail universe towards 3,000 stores operated by ten foreign networks. Their management says expansion plans will not stop here.
Modern retail will continue development in Romania in the near future by investing hundreds of millions of euros in 250 to 300 new stores a year, as the international chains have already announced. The trend in Romania is not uncommon, considering modern retail accounts for more than 80% of the market in Western Europe.
However, traditional retail will not go away, considering half of the Romania’s population lives in rural areas, served by few international chains.
(English version by Loredana Fratila-Cristescu)