The aggressive expansion of retailers is causing small local entrepreneurs to drop plans to open convenience stores, with the number of newly established companies that operate non-specialist stores or shops in a market, dwindling every year.
Whereas the number of retail companies accounted for 8.4% in the total number companies created in 2004, in 2007 the percentage reached 4.9%, data from the National Trade Registry Office (ONRC) reveals.
Only 6,946 retail firms operating non-specialist stores were created in 2007, compared with the year before when the number was 40% higher, and double in 2004.
"It was only natural that supermarket expansion would affect convenience stores. I don't think street corner shops will disappear, just that their number will go down," said Liviu Voinea, executive director of the Group of Applied Economies.
Modern retail formats (excluding cash & carry stores) have reached 27.6% of the market, compared with 15.2% in 2005, according to market research company MEMRB.
While supermarkets are expanding, MEMRG data reveals that kiosks retail as a share of overall sales has dropped by two percent to 6.7%, and the share of small shops (20-40 square metres) reached 43.8% in 2007 from 45.2% in 2006.
Although continuing to cover most the market, small shops have minimal growth prospects, being swallowed by the retail heavyweights.
The latest transactions in this field verify the trend: two Mara shops in Focsani have joined the G'Market and Penny networks, three The Best stores in Bucharest have joined the La Fourmi chain, and two Hoffers (Baia Mare) were bought by Billa.
According to ONRC data, more than 5,000 non-specialist retail firms were deleted from the registry last year.
Whereas the number of companies dealing in trade has been dwindling, the construction sector has witnessed the highest