Carrefour fights Mega Image for clients

The prices with which Carrefour Market entered the Bucharest market show the French network is betting on a broader mass of consumers than Mega Image, the biggest supermarket chain in the city. The battle at the shelves between Carrefour Market, the newest supermarket in Bucharest, and Mega Image, leader of the market, shows the two retail chains have different visions on convenience retail. The French retailer tapped into the Bucharest supermarket market with around 10% lower prices for staples compared with its main rival, show data centralised by ZF on the basis of shelf prices. Belgium's Mega Image instead is gaining ground with its offer of special items, which on average are priced 3% below Carrefour Market. Eusebiu Margasoiu, managing partner of The Network consultancy, states that Carrefour's price strategy will secure the network a strong entrance in Bucharest. "It is a penetration strategy based on prices below the market average, which will allow it to rapidly gain sales volumes. Usually, in such cases the retailer posts significant increases at the beginning and then it will have to drive prices upward and it will lose sales volumes".