DTZ Echinox: Steps taken by IKEA, Lidl, and H&M show giants are watching retail sector closely

The fact that three of the world's biggest retailers, with cumulated annual turnover of around 80 billion euros are showing heightened interest in Romania is a positive signal for the local retail market.

Swedish-held IKEA entered the Romanian market directly, after buying the operations and the furniture store in Baneasa from Gabriel Popoviciu, German-held Lidl has recently paid over 200 million euros for the Plus supermarket chain, whilst another Swedish group, clothing retailer H&M is close to signing the contracts to open its first stores in Bucharest.

These signals, which come at a time when retailers and owners of retail space complain about the sales decline, prove the market's recovery prospects, once the general trend of the economy is reversed and consumer confidence returns, believes Mihnea Serbanescu, majority shareholder and general manager of real estate consultancy DTZ Echinox.

"Retail has good potential. Look at what IKEA has done, look at Lidl's acquisition, they prove massive confidence in the market's potential. At the same time, fashion retailer H&M chose Romania over Bulgaria because it believed the local market to be more attractive so that it can open its first stores here," said Serbanescu in an interview to ZF.