Foreign chains to replace convenience stores

Big retail chains are relying on stores this year, as well, in order to force expansion on a market where new shopping centres are only on paper. In a year when local retailers continue to fight for survival, the big “sharks” in food retail are coming up with over 50 million euros for new expansion projects, according to ZF calculations.

Billa, Mega Image, and Carrefour Market operators will open an overall 46 stores in 2010, compared with 26 last year, according to plans announced by the companies.

So, the second year of consumption decline in the history of modern retail brings to the forefront a market segment previously overshadowed by the hypermarkets’ aggressive expansion: small convenience food stores.

With a 1,000 square-metre store format, foreign supermarket chains find their way into areas not covered by hypermarkets, seeking to move into locations from retailers that caved in to the crisis.

Moreover, in the last year modern kiosks have made their way into the market – Finnish-held R-Kiosk and the Mic.ro chain developed by billionaire Dinu Patriciu – will speed up the development of the segment. The new kiosks cover up to 200 square metres and in Bucharest – the starting point for these new expansions – they compete with the 1,000-2,000 small shops and mini-markets.