Bucharest's food retail market is still a long way off becoming saturated, as indicated by the level of coverage from major networks, which opened one store per 25,600 inhabitants. On a national scale, coverage is twice as low, according to the data centralised by ZF.
At the end of last year, the 19 major retail networks present on the domestic market, of which 16 are affiliated with international chains, totalled almost 400 stores, namely one unit per 55,000 inhabitants.
The analysis of coverage of modern store formats reveals a significant gap between the markets in Romania and France (one of the most saturated in Europe). The same comparison provides an explanation for the significant interest of major retailers, such as Carrefour, Metro and Schwartz, in rapidly expanding on the hypermarket segment in Romania.
However, retailers are hampered by the high price of real estate, which currently exceeds levels registered in Germany and Austria. As a result, a large part of several major retailers expansion plans in 2007 were not finished.
In Bucharest, the challenges are even greater than at a national level, however two networks did announce their entrance onto the Bucharest market this year, namely SPAR and Profi, after Real Hypermarket opened its first store in Bucharest and Louis Delhaize took over Albinuta last year.
According to the largest companies' plans, 17 modern format stores will open in 2008, and join the current 77.
The development of modern retail in Bucharest has been marked by the expansion of the hypermarket segment over the past five years. As a result, hypermarkets last September reached a 38% market share in Bucharest, against just 3% in 2002. In 2007, supermarkets held the second position on the market.
Whilst the low coverage of modern retail still allows competitors not to feel the impact of their rivals in terms of sales, on the labour force market retailers have felt the impact of rivals' expansion, which requires hundreds of employees to open one single large store. In terms of recruitment, major retail chains have held the top positions on the market in recent years.
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