Planet Retail 9 Jul 2008

Speaking at a recent conference, the marketing manager of Carrefour Romania, Andreaa Mihai, has said that the share of modern retail in the overall Romanian retail sector is to rise to 50% in 2010 from 39% in 2007. In Bucharest, modern retail accounts for 70% of the retail market, added Mihai. "'In 2008, in Romania, a number of 74 hypermarkets are operational, together with 88 supermarkets, 152 discount stores and 40 cash & carries. The store chains will continue their expansion in 2008 to zones with a low buying power, leading to a reduction in turnover per square metre.

In 2007, Carrefour's turnover per square metre stood at EUR9,700 (USD13,273)", pointed out Mihai. According to Mihai, Carrefour sales could exceed the EUR1 billion (USD1.56 billion) mark this year, following the acquisition of the Artima store chain. "This year we are going to rebrand the 21 Artima stores and further expand them. We are open both to a direct expansion, through our own stores, as well as to some acquisitions. We are also open to entering the discount sector, but for the time being our plans are focused on the hypermarket and supermarket segment", underlined Mihai. Retailers face problems such as the rise in land prices, development of all forms of trade, salary increases and labour migration. "We are facing a serious workforce problem, particularly in Bucharest, given the low unemployment rate in this area," according to Mihai. "The Romanian retail sector has major difficulties recruiting new employees, particularly in the Bucharest area, given the low unemployment rate and the workforce turnover."

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