Romania’s retail market is estimated at EUR 40 billion this year, up 12% over 2016, according to a study by credit insurance company Euler Hermes.

About 85% of the products sold in Romania are of mixed origin whereas only 15% are from local production.

The local retail market has gone up in the last two years due to the increase in the gross minimum wage, the VAT cut from 24% to 19%, and the higher employment. Increased consumption has boosted the dynamics of the retail market.

Some 230,000 sqm of new retail space were delivered last year, up 40% over 2015. The modern retail sector saw a record number of 240 new stores. Profi was the most active retailer, with 134 new stores, followed by Mega Image with 60. Retailers have focused on opening proximity and small-format stores.

Four large companies have a stake of 60% in the modern retail market, namely Kaufland, Carrefour, Metro Cash&Carry and Auchan.

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

editor@romania-insider.com