Retail Articles
TOP 10 RETAILERS IN 2021
Most large retailers recorded revenue increases in 2020, but rather unfavorable profit developments. Overall, the cumulative turnover of the top 10 retailers increased by almost 8 billion lei (+ 13%), and the cumulative profit increased by 8%. However, this seemingly excellent evolution is mainly due to the exceptional growth achieved by a few players.
Kaufland, Carrefour, Profi and Rewe (Penny), as well as almost all major local retailers had revenue cuts in 2020 at the same rate as in previous years.
Mega Image and Metro continued to grow, but at a slower pace compared to 2019, Mega Image registering the poorest performance in recent years in this regard. Profi has come even closer to Carrefour and it is possible that by the end of 2021 we will see a reversal of the positions of the two retailers.
In regard of the profit obtained, things are clearly different: 2 out of 10 retailers show a worsening situation, whether it refers to decrease in profit or increase in losses, or whether it refers to the transition from profit to loss . One of the main explanations for this large-scale involution in terms of profit is related to the very high costs required to comply with health safety measures and prevent the spread of SARS Cov2 infection.
Kaufland recorded a profit increase and reports the most consistent profit, Auchan has the highest rate of profit growth, and Carrefour is in the segment of those with good profit developments. Penny also saw a 54% increase in profit, the same as in the previous year.
Artima reduces its loss, while the other top retailers have had less satisfactory or even bad results in terms of profit. Profi recorded an increase in loss, as well as, while Mega Image, Metro and Selgros had a decrease in profit.
Lidl, Kaufland and Carrefour, the winners of last year’s retail, are fighting for the first position in 2021. Before the Halloween and Christmas campaigns, which can be decisive in establishing the final hierarchy, none of the main competitors seems to have detached.
The Lidl discounter, the Kaufland hypermarket chain (both companies being part of the German Schwarz group) and Carrefour (the oldest international retailer on the Romanian market) rely heavily on their own brands in the battle for the first place.
After the podium deals, Lidl, Kaufland and Carrefour, the list goes on with Profi, Mega Image and Metro. The only chain that records losses is Profi. At the same time, the company has the largest number of employees, over 17,000 in 2020. At almost identical turnover, over 2.6 billion euros, Lidl has less than 8,800 employees, while Kaufland has over 13,000 employees. Lidl p’s turnover exceeds that of Kaufland by 6 million euros, but the former leader has a better profit by over 40 million euros.
In 2021, the Schwarz group focused on expansion, as in the previous year. In the 10 years of existence on the Romanian market, Lidl has reached over 300 stores and continues to expand its network at a rate of 10-15 stores per year.
The other large network part of the same group, Kaufland, has budgeted for 2021 investments of 375 million euros, 25% more than in 2020, for the opening of new stores, remodeling and renovations.
