Foreign-owned retail companies get most of the Romanian sector’s profit

More than half (56%) of the profits generated by retail companies in non-specialized stores are made by foreign-owned companies, which account for only 0.4% of the total number of firms Romania has in this sector. Some 99.6% of the companies in this field are Romanian companies, but they account for less than half (44%) of the sector’s total profit, according to an analysis by Creditinfo Romania. The total profits in the retail sector reached over RON 2 billion (EUR 440 million) in 2016. Despite the difficult situation of Romanian companies in non-specialized retail trade, 3% of these companies are still able to cope with the growing competition of foreign companies. Among the foreign companies, the highest profits are made by those with German capital, namely 38%. These are followed by companies with French capital - 10% and those with Dutch capital - 7%. In sales terms, foreign groups hold 52% of the local retail market, with German retailers having a market share of 21%. However, Romanian companies are the ones that provide most jobs in the field, according to Creditinfo Romania. Out of 180,000 people working in this sector almost three quarters (70%) work in Romanian firms and 30% in foreign-owned companies. The biggest retailers in Romania include German groups Schwarz (Kaufland and Lidl), and Rewe (Penny Market), French groups Carrefour and Auchan, and Dutch group Ahold Delhaize (Mega Image). editor@romania-insider.com