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Survey : Romania's modern retail market at an estimated 17 - 20 bln euro
Romania's modern retail market stands at an estimated 17 - 20 billion euro, following the surge in consumption by more than 10 percent in 2017, experts consider. According to a market survey by Euler Hermes, the retailers' territorial expansion also contributed to business growth, as more than 350 new stores opened in 2017, mostly in rural areas.
Profi is for the second year in a row spearheading expansion with almost 200 newly opened stores for all formats, but mainly with Profi Loco outlets. Profi also holds the top position by the number of stores, followed by Mega Image - which however has slowed down in 2017, and Carrefour, which integrated the Billa store chain.
Experts also argue that 2017 has been very propitious for consumption, as they cite data provided by the National Institute of Statistics according to which retail sales saw two-digit growth. "This dynamics was driven by the consumers' high appetite for buys, as a result of wage increases, of the rise in the pension reference point, but also due to the tax cuts (the VAT cut from 20 pct to 19 pct), the scrapping of the fuel extra excise in Q1 and Q2 2017, and the 2.3 percent increase of the employment rate," Euler Hermes said.
In the past year, retailers have put their stakes on discount and proximity stores, as the tendency is to get closer to consumers. Thus, retailer Mega Image expanded outside Bucharest, Carrefour widened the Carrefour Market concept, Auchan entered gas stations with My Auchan stores, and Metro expanded its 'Two Steps away' grocery outlets network.
For this year experts estimate that neighborhood outlets and expansion in rural areas carry significant growth potential for retail.