Discount stores gaining ground in Romania; beer, coffee and fruit juices popular with shoppers

Discount stores, such as Penny Market, XXL Mega Discount and Lidl are gaining popularity with Romania shoppers, according to a new study by GfK Romania. Six out of ten Romanians shop in discount stores at least once a month and the average number of visits is twice a month. Some 9 percent of household expenditure on consumer goods goes to discount stores, according to GfK. The discount sector also recorded an 11 percent increase in absolute value in 2012 against the previous year. The favorite products among shoppers at discount stores are food and beverages, with beer, water, fruit juices and coffee mentioned by name in the report. Sales of drinks recorded a 10 percent rise in 2012, however, the largest increase was for foods, up some 19 percent on the previous year. Own brand or private label products in supermarkets are making up an increasing percentage of total sales. In 2012, private label market share rose to 12 percent of consumer goods across the country and all retail formats. Own brands record an even bigger share of total sales in discount stores, some 50 percent. Last year, 9 out of 10 Romanian households bought discount stores' own brand products. According to consultancy and market research firm GfK Romania, the local retail market is changing towards a more modern model and the increasing popularity of discount stores is a symptom of the trend, under which supermarkets will have to compete on price, with loyalty rewards, special offers, convenience and customer satisfaction with stores. The GfK study monitored household consumption in 2012 of around 90 categories of consumer products on a sample of 2,200 households, representative at a national level. editor@romania-insider.com