Romanians spent 36 billion euros in large retail chains in 2023, up 11% compared to 2022

Romanians spent 36 billion euros in large retail chains, an amount higher by 11% compared to 2022, of which spending on FMCG represented 22.5 billion euros (more than 60%), according to the Report Romania Retail Snapshot 2024 by Cushman. & Wakefield Echinox real estate consultancy, based on the financial results of 116 companies in 12 different retail segments.

The second largest share (3.6 billion euros and 10%) belonged to DIY stores, a segment followed by Electro-IT (3.3 billion euros and 9%) and fashion retailers (2.2 billion euros, 6.1%). Jewelery (€212 million, 0.6% of total sales), footwear (€356 million, 1%) and cosmetics (€458 million, 1.3%) retailers had the lowest shares in the shopping cart analyzed in the report.

Total revenues broken down by segment

Source: Cushman & Wakefield Echinox Reserch based on data published by the Ministry of Finance and the National Institute of Statistics

The annual turnover growth rate in 2023 was slightly above the annual inflation rate (10.4%) and slowed from 2022, when the corresponding peak was 16.3% against inflation of 13.8%.

Total turnover evolution (MIL €)

Source: Cushman & Wakefield Echinox Reserch based on data published by the Ministry of Finance and the National Institute of Statistics

All analyzed retail segments recorded higher turnover compared to 2023, with the largest increases being reported by Cosmetics (33.5%), Specialized stores – pets, newsstands, tobacco, specialized pharmacies, etc. . (20.4%), Kids & Toys (17.5%) and food and beverage retailers (14.5%).

The 12 sectors analyzed are FMCG (large hypermarket/supermarket chains), fashion, DIY, sports, footwear, children and toys, jewelry, home and decor, food and beverage, cosmetics, electro-IT and specialty stores. Together, the 116 retailers in question have more than 6,000 stores in Romania, located mainly in shopping centers, retail parks and shopping malls.

The lowest turnover growth rates in 2023 (below the average annual inflation rate) were reported by DIY (3%), Home & Deco (4.8%), Jewelry (6%), Electro – IT ( 8.3%) and Sport ( 8.6%) segments.

All other segments posted above-inflation sales growth rates: 12% FMCG, 12.3% Footwear, 11.3% Fashion.

Vlad Săftoiu, head of research, Cushman & Wakefield Echinox: “The retail market performed very well over the past year, despite 2023 being the second consecutive year of double-digit inflation. Therefore, all segments in our snapshot saw sales increases from 2022, most of them above inflation. Moreover, an extended analysis of the entire period 2019 – 2023 shows that the average CAGR (compound annual growth rate) for the main retail operators (11.5%) was well above the average annual inflation rate in the same time frame (7 .9%). The forecast for this year is also positive, with official public data showing consistent growth in retail sales compared to the same period in 2023.”

The average annual sales growth rate from 2019 to 2023 outpaced the average annual price increase for most categories (11.5% vs. 7.9%), except for footwear retailers (6.3%) and Home & Deco (6.8%). On the other hand, the Cosmetics segment experienced the highest growth during this period (17.8%), followed by specialized stores (17.3%).

The turnover increases reported by major retailers were supported both through expansions and organically, thanks to increased sales in brick-and-mortar stores and online expansions by a number of operators.

These expansions also came as a result of investment by developers (in shopping centers and retail parks) who completed over 50 projects between 2019 and 2023, consisting of both new schemes and extensions of existing ones, totaling over 715,000 sq m. m of new modern commercial spaces.

The evolution of turnover by activity sector in 2023 vs 2022 and Revenue CAGR 2019 – 2023

Source: Cushman & Wakefield Echinox Reserch based on data published by the Ministry of Finance and the National Institute of Statistics