Romania Retail Report

Providing expert analysis, independent forecasts and competitive intelligence on the retail industry.

Report includes: BMI Industry View, Industry SWOT Analysis, Industry Forecasts, BMI's Retail Risk Reward Index, Economic Forecasts, Company Profiles and Global, Regional and Country Industry Overviews.

Why you should buy this report

  • Benefit from the latest market opportunities
  • Understand the threats to your operations and investments and protect your company against future risks
  • Gain insight on emerging trends that could support, strengthen or disrupt your activities in the market
  • Get a full view of the competitive landscape to assess your market position
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Romania Retail Report
Product Price
$1,295.00

BMI View: The key indicators for Romania's retail market all reflect positive growth trends over the forecast period, with rapid economic expansion in the country supporting steady gains in average household income rates which in turn will stimulate higher rates of spending in a number of retail sectors. Despite this positive growth, we do note that income levels remain well below the averages seen in developed Western Europe markets, which will undermine the potential for growth in non-essential sec tors. There is also some longer- term risk from the high rate of emigration which is resulting in the shrinkage of the Romanian population and therefore potential consumer market - though this trend is somewhat offset by gains in urbanisation and income levels.

Headline Household Spending
(2014-2020)
e/f = BMI estimate/forecast. Source: National Sources, BMI

Key Views And Developments

  • Romania is expected to record the second fastest GDP growth among the EU states over the medium term, expanding by close to 4% annually between 2016 and 2020. Along with improving labour market conditions and increases to national minimum wages levels and public sector pay, this will drive steady gains in average household income rates.

  • Private consumption is one of the key drivers of domestic economic growth. We are currently forecasting a healthy increase in household spending in Romania, from USD46bn in 2016 to USD67bn in 2020.

  • The Romanian retail sector continues to attract investment. Polish investment fund Enterprise Investors has acquired the toy store retailer Noriel which has a presence in 27 cities via close to 50 stores. Enterprise Investors will reportedly invest EUR2mn in the development of the chain.

  • A number of international retailers are expanding their presence in Romania. Swedish fashion retailer COS is due to open its first store in Romania, located in Bucharest. US watch and accessory retailer Fossil is also opening a store in Bucharest, due to be located in the AFI Palace Cotroceni mall.

BMI Industry View
7
SWOT
9
Retail SWOT
9
Industry Forecast
11
Headline Retail Forecast
11
Table: Total Household Spending (Romania 2013-2020)
13
Table: Retail Sector Spending, % Of Total (Romania 2013-2020)
14
Table: Retail Sector Spending, % of GDP (Romania 2013-2020)
15
Table: Headline Retail Sector Spending (Romania 2013-2020)
16
Retail Sector Forecast
18
Food & Drinks
20
Table: Food, Drink & Tobacco Spending (Romania 2013-2020)
21
Clothing & Footwear
21
Table: Clothing & Footwear Spending (Romania 2013-2020)
22
Household Goods
22
Table: Household Goods Spending (Romania 2013-2020)
23
Personal Care & Effects
24
Table: Personal Care Spending (Romania 2013-2020)
24
Household Numbers and Income Forecast
25
Table: Household Income Data (Romania 2013-2020)
27
Table: Labour Market Data (Romania 2013-2020)
29
Demographic Forecast
30
Table: Total Population (Romania 2013-2020)
33
Table: Population: Babies (Romania 2013-2020)
33
Table: Population: Young Children (Romania 2013-2020)
34
Table: Population: Children (Romania 2013-2020)
34
Table: Population: Young Teens and Older Children (Romania 2013-2020)
34
Table: Population: Young People (Romania 2013-2020)
35
Table: Population: Older Teenagers (Romania 2013-2020)
35
Table: Population: 21yrs + (Romania 2013-2020)
35
Table: Population: Young Adults (Romania 2013-2020)
36
Table: Population: Middle Aged (Romania 2013-2020)
36
Table: Population: Urban (Romania 2013-2020)
36
Industry Risk/Reward Index
37
Central And Eastern Europe Risk/Reward Index
37
Table: Central And Eastern Europe Retail Risk/Reward Index, Q316
37
Romania Risk/Reward Index
38
Rewards
38
Risks
39
Market Overview
41
Competitive Landscape
46
Department Stores
46
Table: Selected Department Store Retailers
46
Clothing & Footwear
47
Table: Selected Clothing & Footwear Retailers
47
Household Goods
47
Table: Selected Household Goods Retailers
47
Electronics
48
Table: Selected Electronics Retailers
48
E-commerce
48
Table: Selected e-commerce Retailers
48
Pharmacies
49
Table: Selected Pharmacies Retailers
49
Glossary
50
Methodology
57
Industry Forecast Methodology
57
Sources
60
Risk/Reward Index Methodology
60
Table: Retail Risk/Reward Index Indicators
61
Table: Weighting Of Indicators
63

The Romania Retail Report has been researched at source and features BMI Research's independent assessment and forecasts for the retail sector. The report examines key drivers of retail sales growth and future prospects, including consumer spending and private sector investment.

BMI's Romania Retail Report also examines the level of development and potential for growth of the retail sector, the commercial initiatives of major players, changing consumer demographics that influence demand and the regulatory environment. Key sub-sectors include mass grocery retail, autos, over-the-counter pharmaceuticals, computers and consumer electronics.

Key Benefits

  • Benchmark BMI's independent retail industry forecasts for Romania to test other views - a key input for successful budgeting and strategic business planning in the Romanian retail market.
  • Target business opportunities and risks in Romania through our reviews of latest industry trends, regulatory changes and major deals, projects and investments.

Coverage

BMI Industry View

Summary of BMI’s key forecasts and industry analysis, plus a discussion of major industry developments and a snapshot of key short-term demand-driving macroeconomic movements.

Industry SWOT Analysis

Analysis of the major Strengths, Weaknesses, Opportunities and Threats within the retail sector and within the broader political, economic and business environment.

BMI Industry Forecasts

There are four separate 5-year forecast modules in the retail reports. These are:

  • Headline Retail Forecast: Total household spending (local currency and USDbn, % growth, % GDP, per capita, per household), spending by retail sector (food & non-alcoholic drink, alcoholic drink, clothing & footwear, housing & utilities, furnishings & home, health, transport, recreation, education, restaurants & hotels, personal care & insurance (local currency and USDbn, % growth, % GDP, % of total spending)
  • Retail Sector Forecast: Breakdown of Food, Non Alcoholic Drink, Alcohol, Tobacco, Clothing, Footwear, Household Goods, Furnishings, Appliances, Glass and Tablewear, Household Textiles, Consumer Electronics, Garden Toys and Pets, Home and Garden tools, Personal Care, Personal Effects Spending (USDbn, % Growth)
  • Household Income and Numbers Forecast: Number of Households (‘000, % growth); gross income per household and per capita; net income per household and per capita; tax and social contributions per capita; breakdown of household incomes – USD5000+, USD10,000+ USD50000+ (‘000, % of total); labour force, employment and unemployment (‘000, % change)
  • Demographic Forecast: Total population; Babies 0-12 months; Young Children 0-4yrs; Children 5-9yrs; Young Teens and Older Children 10-14yrs; Older Teens 15-19yrs; Adults 21yrs +; Young Adults 21-29yrs; Middle Aged 40-64yrs (‘000, % growth, male, female); Urban Population (‘000, % population); Rural Population (‘000, % population).

BMI’s Retail Risk Reward Index

BMI’s Risk Reward Indices provide investors looking for opportunities in the region with a clear country comparative assessment of a market’s risks and potential rewards. Each of the country markets are scored using a sophisticated model that includes more than 40 industry, economic and demographic data points to provide indices of highest to lowest appeal to investors, with each position explained.

Market Overview

Provides a detailed country-specific analysis of the key trends and developments in the retail sector as a whole, as well as an assessment of the main drivers affecting the major retail segments including mass grocery retail, fashion, pharmacies, consumer electronics, home improvement and personal care. The market overview also considers the most effective store formats in a given country and the impact of these factors on the main international and domestic players’ development strategies.

Competitive Landscape

This provides a brief overview of the key players in each subsection of the retail sector including MGR, Fashion, Home Improvement, Consumer Electronics, Pharmacies, and Department Store chains.

Sources

The Retail Reports draw on an extensive network of primary sources, such as multilateral organisations, government departments, industry associations, chambers and company reports.