Franchise side by side with new retailers

The development of commercial centres on the Romanian market in the last few years has brought into the spotlight a phenomenon unknown to many Romanians, yet very common in the developed countries – the franchise. Whether it is about malls or shopping galleries developed around a hypermarket, the common denominator consists in the stores opened under the franchising system.

Whereas there were about 35 brands introduced as franchises in Romania by 2000, the number of such brands has risen to more than 100 in the meantime, according to the estimates of the Association of Franchise Networks in Romania (ARFR), a newly established organisation that comprises part of the franchisers and franchisees in Romania.

Such enterprises are bound to boom in the future, once more and more commercial centres develop. Three hypermarkets (and shopping galleries implicitly), as well a mall-type complex are expected to open this year alone. Which means the number of such centres on the Romanian market will double, therefore stores operated under the franchise system will expand in full gear.

Carrefour is set to dedicate a hypermarket in Eastern Bucharest by the month’s end, and another one in Brasov in the second half, while Cora will open a hypermarket in Western Bucharest. The Western area will also see the dedication of the second mall after Bucharest Mall, Plaza Romania, operated by the Turks at Anchor Group.

Since most of the international retail chains have chosen Bucharest as their initial destination in Romania, the franchises could not have done otherwise.

As ARFR officials say, over 70% of the brands that came in Romania as franchises are located in Bucharest, yet research shows franchisers have also chosen cities with 100,000 inhabitants and developed networks in Timisoara, Constanta, Brasov, Ploiesti and Sibiu.
ionut.bonoiu@zf.ro