Retail Insight: This giant of the Romanian economy keeps its steady growth. Top 3 players & trends
The retail industry in Romania has been in continuous development over the past 10 years, with official results highlighting a steady evolution in sales: the economic growth of Romania in 2022, with a 4,7 percent higher GDP compared to the previous year, was primarily driven by commerce.
The contribution of the retail sector to the formation of the GDP was 18.6% in 2022, with the volume of activity increasing by 6.6% compared to 2021, according to the Romanian National Institute of Statistics. However, the growth of the retail industry is expected to temper, in the next two years. If 2022 registered a 6.6% increase as compared to 2021, in 2023 Erste Group estimates that trade sales will be only 2% higher versus 2022. However, the good news is that in 2024 the increases are expected to return and accelerate to 3.9% compared to 2023.
THESE ARE THE TOP 3 RETAIL PLAYERS IN ROMANIA:
| Company | Turnover 2022 (EUR) | Employees 2022 |
|---|---|---|
| Lidl Discount SRL | 3.722.134.200 | 10.086 |
| Kaufland Romania SCS | 3.222.519.875 | 13.827 |
| Profi Rom Food SRL | 2.346.426.987 | 13.714 |
Source: Romanian Ministry of Finance, fiscal year 2022
Full speed transformation in Retail
The post-pandemic period, inflation, geopolitical challenges and the current socio-economic context continuously drive an accelerated industry transformation, to alleviate the pressure on buyers and encourage them to keep purchasing.
Transformation strategies, sustainability agendas, digitalization and the integration of artificial intelligence into offered services are just a few of the main elements keeping this industry afloat.
According to a recent global GfC study, 65% of retailers declare that their main focus will be on sustainable products and services.
E-retail to accelerate
The contribution to GDP by the e-commerce sub-sector is estimated at 3.17% for 2023, which ranks Romania on the 3rd place in the CEE region, according to an analysis by the Romanian Association of Online Stores.
The largest e-commerce player in Romania is Dante International, which owns emag.ro and fashiondays.ro online platforms, with a turnover in 2022 of EUR 1,438,640,825.
The online presence of market players is crucial for every stores, as 81% of the consumers conduct digital research before making purchases, as highlighted in the KPMG global report „Future of Retail”. So most retailers, even if they own offline stores, are expected to focus more and more on developing their e-presence at the same time.
