The trend is on the one hand because of the good results of those companies last year, when they expanded and saw private consumer spending and the overall economy grow. On the other hand, it was because the networks not only continued to operate amid the pandemic but also invested in development again in 2020 and expect better results.
Nine of the ten modern retail chains in Romania are among the 100 most valuable companies in Romania’s economy. The only one that is not there is Cora, the 11-hypermarket chain that is the smallest retailer by revenue, this year’s edition of “Top 100 cele mai valoaroase companii din Romania” (100 most valuable companies in Romania) ZF yearbook shows.
Modern retail numbers some 3,500 stores in various formats, which generate almost RON70 billion sales, or more than 60% of the total grocery retail. The rest comes from the 65,000 to 67,000 traditional retail stores.
A company in the retail sector is usually not valued through the EBITDA method like those in other sectors but through the times-revenue method. A large retailer with good results may get more than 50% of its revenue (over 0.5 multiple) as a price, ZF has found. This goes for the local modern retail companies, which are worth RON46 billion together or 65% of their 2019 revenue.
All nine companies in the ranking were valued higher than in 2019, by 4% (Metro Cash & Carry) to 59% (Lidl Discount). Lidl was also the leading retailer by rise in revenue, 25% to almost RON10 billion. The retailer is the second most valuable in Romania with its RON7.4 billion value, behind Kaufland, part of the same Schwarz group.
Kaufland was valued at RON10.468 billion. Third most valuable retailer was Carrefour (RON5.593 billion).
(English version by Loredana Fratila-Cristescu)