First declines in consumer goods distribution

2009 brought the first sales declines for large FMCG distributors, after seeing two-digit rises in past years, stimulated by the growth of consumption. "In local currency, sales on the convenience market (small stores and petrol stations) fell by 7-15% in the first three months of the year against the same time in 2008. We have noticed that all stores in this sector have posted a 5-20% decline," said Narcis Mihai, general manager of Lekkerland Romania, the largest convenience store distribution company on the Romanian market. Lekkerland saw its turnover rise from 11 to around 60 million euros over the last three years. Distributors are also affected by the closure of small stores, amid a worsened economic environment and amid aggressive expansion of international chains. "The number of traditional commerce clients has continued to go down this year," said Wael El Ghadban, general manager and shareholder of Top Brands Distribution, the second largest FMCG distributor on the market, with 315 million-euro sales. "This year our sales have continued to go up, but this is not necessarily natural growth, brought on by market dynamics. We have extended our coverage in 2008, and the effects are currently showing," he specified.