Food discounters, with turnover worth around 60m euros five years ago, are likely to reach sales of one billion euros this year, being the only trade formats still reporting annual increases of above 30%. Last year, the entire modern food retail registered sales of 7-8bn euros, with the discount segment accounting for less than 10% of this market.
Amid consumers' falling purchasing power, discounters are winning customers from retailers with considerably higher prices, such as convenience stores or supermarkets this year.
"It's an interesting moment for discount retail, which is boasting growth way above the market average," stated Caius Crisan, general manager of Profi network.
Data reported by discount retailers show Penny Market and Profi posted the highest growth paces in the first half, 30 to 50%. Other operators on this segment are Plus and MiniMax.
While domestic supermarket chains are considering restructuring plans, and hypermarkets are slowing down expansion, discounters are announcing stepped up development to a number of 82 new stores this year, which would involve investments worth above 100m euros.
By comparison, last year, when the stars of retail were hypermarkets, 100 stores were opened overall in modern consumer goods retail. As they expand their sales areas by 40% and gain new clients this year, discounters' turnover is likely to go beyond 1bn euros in late 2009, nine years after the first discounter network entered the Romanian market. The segment had reached 676m euros last year.
"For the second half of this year there are no negative signals from the market for discounters," Caius Crisan stated.
Thus, should the first half growth pace maintain in the second half, discount retail could reach 1bn euros in late 2009, also taking into account that retailers are further expanding in the last two quarters.
