On a market clearly dominated by foreign networks, such as Kaufland, Carrefour and Mega Image, local entrepreneurs continue to hold key positions in some parts the country, as they focused on certain cities only without national ambitions.
The local grocery retail, a EUR16 billion to EUR17 billion business, is divided between 12 foreign networks with 1,600 stores (hypermarkets, supermarkets and discount stores), which account for 57% of the market, and small local entrepreneurs, which have 70,000 – 80,000 small stores or 43% of the market.
The aggressive expansion of foreign-held chains makes many entrepreneurs close or sell the business to an international chain. Lilieana Zanfir and her husband, who created the Zanfir business about two decades ago, still have expansion plans even though they admit they had foreign suitors.
“We had a multinational trying quite hard to woo us but we reached no agreement. They, the foreigners, have got the impression that we do not know our own worth but we hired a company that told us our market value and the amount we could sell our business for. We know how much our exit is worth,” Lilieana Zanfir said.
She added she and her family still had a lot to do at the moment to consolidate the position of the business and were not considering an exit. “You never know, though.”
The business started with a kiosk then moved to a small store and took the step to modern retail more than a decade ago.
“After three years of flat or really slight growth of our business, in 2013 we took some steps hoping to boost sales. We reorganized our procurement department and analyzed each product carefully. We also developed the marketing department, made attractive long-term offers, developed the fresh product range at our meat products plant, got new suppliers,” Lilieana Zanfir says.
The company also closed the non-profitable stores, two stores that had a floor area of 80 square meters and sold a limited range of products.
“This year we increased our central warehouse by 500 square meters and increased revenue by 30%. Also this year we built a new store in Panciu and relocated the supermarket there.” Zanfir therefore moved from tenant to owner.
The relocation helped boost sales 60%. The company will also inaugurate a new supermarket in Focsani in mid-December, which will be another store of its own, not rented.
“We have other plans, too, which will probably start at the end of this year,” the entrepreneur says without elaborating further.
The Zanfir group focused on Focsani, the city where it all began and on the nearby areas in Moldavia, a poor region and less attractive and subsequently served by foreign companies. This is an area where mostly low price international chains went.
(English version by Loredana Fratila-Cristescu)