NINE O' CLOCK: Hyper and supermarket retail sector up 50 pc by 2010

Nine O' Clock - 18 octombrie 2006

Bucharest - Modern retailing in Romania, represented by hyper and supermarkets, has a market share of circa 20 per cent, yet it is up for major development in the upcoming years, retailers said at Romania Retail Forum, an event organised by the Retail magazine, published by Mediafax.Traditional trade has a market share of over 70 per cent, yet modern retailing will increase up to 50 per cent in 2010, according to a study the minister of European Integration, Anca Boagiu, presented at the Forum.

In other European countries, the Czech Republic, Poland, modern retailing has a market share of 35 and 46 per cent respectively. Bulgaria is level with Romania, in both countries retailers cover 17 per cent of the sales, and traditional trade, 79 per cent respectively.

Bucharesters are Romania’s biggest spenders in large-size shops, followed by residents in the western part of the country and in Transylvania. At the other end stand the residents in Romania’s southern and south-western areas, according to data supplied Carrefour Romania. “In the south-western area, in counties such as Gorj, Valcea and Olt, the average sum spent annually at retailers is of circa EUR 200 per person,” said the Carrefour Romania marketing director, Andreea Mihai, according to whom Romania is on par with Poland’s level in 1997 with regards to the amounts spent in big shops and the development level of the retail industry.

Foodstuffs make the bulk of the products sold in stores, an annual average of EUR 269 namely.

Varujan Vosganian, the chairman of the Senate Budget-Finance Commission, said that a framework favourable to retail development also supposes an adequate competing environment and fiscal policy. “Retail stands at less than 50 per cent of capitalization. We should not tie the development of this sector only to increased consumption, this segment will develop and mature in the context of an economic market that is developing and maturing,” said Vosganian.