2010 was the year of modern retail adapted to the economic crisis and small format stores, discounters and supermarkets were the driving force of growth for large networks, despite the drop in consumption.

Small format stores began 2010 by expanding in towns with 20.000-30.000 inhabitants, counting on proximity, product assortment adapted to local customs, as well as on promoting price cuts. In terms of modern retail in 2010, most large networks managed to consolidate their position. International retailers continued their store openings, but the number of stores and the formats were somewhat different than in previous years.

Discounters were by far the ones who opened the most stores last year, 385 in total, representing a 38% rise, compared to 2009. Discounters invested around E100m, taking into account a value of E0,75m per unit (except Kaufland, which invested around E8m for each new store). However, 2009 remains the best year for retailers, who opened 116 new stores. According to MEMRB data, during the last month modern retail grew by 10 discount stores, of which two were Kaufland’s, and by about five supermarkets.

The supermarket segment maintained its constant growth rate, being the second segment after the discounters, in terms of store openings in 2010, with a total of 27. According to retail audit data offered by MEMRB, the supermarket segment has been a leader since 2003, in terms of store openings, with a yearly average of 17 new units opened during the last eight years. If 2009 was the year of the discounters, 2010 can be called the year of the supermarkets. The opening of new supermarkets attracted investments of E27m in 2010, taking into account a value of around E1m per each unit.

With regards to the hypermarket segment, 2008 was the year with most openings, 17 new units being introduced, compared to 2007. From 2008 up to the end of 2010, hypermarket openings significantly diminished, with four new units being opened in 2010 and six ones in 2009. The total amount invested in 2010 for the opening of new hypermarkets was of E80m, with E20m for each store.

Cash&Carry stores had a linear evolution between 2003-2010, without significant peak periods or declines. Last year, only one new cash&carry store was opened, compared to 2009, totaling 43 units around the country. The total investment in such formats was of around E20m, without taking into consideration the four Metro Punct stores.

Specialized stores have held up better

The evolution of all retail stores shows a positive dynamic in terms of number of modern retail units, compared to traditional ones and foodservice outlets, which recorded a dramatic fall in 2010. Looking back at the last two years, the most affected type of retail format was the small grocery store: around 1220 such stores were closed in 2010. General stores and gas stations also decreased in numbers last year: 346 such units were closed. Specialized stores were the ones that faired best, managing to weather the storm. The number of pet shops dropped by 21 units last year, while perfume shops lost 83 units, compared to 2009. At the opposite end, supermarkets, hypermarkets, cash&carry and discount stores recorded significant growth. However, the 119 new units could not compensate for the loss of traditional stores. During the last three years, the total number of retail stores decreased. If in 2008 there were 91.000 stores, in 2009 the number decreased to 87.000, while last year it reached less than 84.000.

Top 3 expanding investors

Kaufland: 12 news stores and an investment of E96m

Metro Group: one Real hypermarket and one cash&carry store with an investment of E40m

Carrefour Group: one new hypermarket and nine supermarkets, with an investment of E30m

Remark: Ever since 2003, the supermarket has been leader on the retail segment in terms of new store openings, with an annual average of 17 new units opened during the last eight years.

Andrea Ion

Progressive magazine, Romania