BUSINESS

Modern retail reaches new record: 60 pc market share

Modern retail represents a main pillar of consumption growth, reaching a record market share of 60 percent in Q1 of 2016, according to a market report.

“While before 2008 modern retail was growing by approximately 2-3 percentage points annually, at the expense of traditional retail, in the first three months of this year the growth has been significant, namely 4 percent year-on-year,” GfK Romania Consumer Goods & Retail Director Raluca Raschip stated. GfK Romania authored the GfK Consumer Panel Services report. “The Romanian consumer has relaxed some more, with the weakening economic pressure. The first quarter of 2016 meant a new start for FMCG players, given the rise of Romanians’ purchasing power following the reduction of VAT on foodstuffs and non-alcoholic beverages and the salary hike. The benefit is that the extra money at the consumers’ disposal are now returning to consumption, and 2016 is showing good signs of continued growth,” Raluca Raschip concluded.

Hypermarkets register the highest growth rate. They have gained more than 1 percentage point, to 29 percent market share, thanks to the rise in the value of the consumer basket. Apart from higher consumer baskets on each visit, supermarkets also attract more households and reach 17 percent market share. Discounters show a different growth trajectory, managing to raise the frequency of purchases too.

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