Romania came in third in the global ranking of countries which managed to draw the largest number of new retail brands in 2010, according to a study commissioned by the real-estate company CB Richard Ellis (CBRE), which included over 300 retailers from 73 states, Mediafax reports.
“India and Turkey ranked above Romania, given that the internal demand from the newly-formed middle-class is still on the rise,” a release by CBRE Romania informs. Thus, India has drawn eight new retailers, Turkey seven such brands, whereas the countries ranking third, Romania included, have drawn, each, six international players from the retail market. Countries like the United Arab Emirates, Kuwait, Ireland and Belgium share the third place with Romania.
On the other hand, Romania ranked 33rd out of the 73 countries analyzed, based on the presence of international players. Out of these, retailers in the fashion& denim sector are best represented, followed by those in specialized activity sectors. “Even if we have seen a consolidation in the presence of luxury brands in the past 12 to 18 months, there is still room for expansion, given that only 7 pc of the luxury retailers analyzed are present in Romania,” the release further reads.
Franchises are a common means of operation in Romania, so that 56 pc of retailers expand using this system, a lower percentage compared to the preceding years. “Certain parent-companies have been forced, in the past 12 to 18 months, to take over the activity of the franchise-holder, on account of poor financial results,” is further stated in the release. CBRE explains that, in many cases, however, the major corporations choose to make a direct entry on the market, rather than resort to franchises, as is the case for many brand names present in Romania, such as H&M, Inditex, C&A, New Yorker.