Retailers speed up store openings

International food retail networks want to open around 30 supermarkets and hypermarkets in the last quarter of 2008 by investing over 400m euros, in a bid to make up for delays.

The 10 biggest supermarket and hypermarket networks on the domestic market in early 2008 announced they would open around 50 new locations this year. After the first nine months, 32 locations of those targeted, namely more than half of the overall planned number, are still on the waiting list. Retailers are reluctant to make announcements about the opening date of the stores too far in advance, because most of the times such details change at the last minute. Kaufland discount hypermarket network has boasted the strongest expansion this year, having opened five stores since early 2008, thus reaching 36 locations. The German company will create 3,500 jobs this year, being the biggest employer in Romanian retail. The fast expansion pace helped the network up to the second position among the biggest hypermarket operators, in terms of sales, behind Carrefour. In turn, Carrefour will reach its expansion peak in Romania, planning to open 10-11 stores. If its plans are successfully carried out, Carrefour will double the network of hypermarkets in Romania. Carrefour’s biggest rival, Real Hypermarket, has scheduled most of its 2008 expansion for the last three months. Retailers are striving to make up for delays toward yearend, as they do not want to miss out on winter holidays. The pace of expansion can be crucial in the battle for the top positions. Amid the arrival of some strong rivals in Romania, Cora has lost market share to some networks that have entered domestic retail with aggressive expansion strategies. Last year, Kaufland and Real outpaced Cora in terms of sales, and Auchan, too, could leave it behind in 2008. On the supermarket segment, this year’s most important moves have been company takeovers, with networks having been less dynamic in terms of expansion. Billa, which plans to open 10 supermarkets, has boasted the strongest expansion pace. The cash & carry store segment also registers modest growth compared with that of hypermarkets. The 10 biggest food retailers last year had cumulated turnover worth almost 4.1bn euros in 2007, up 66.7% from a year ago.