Discounters in Romania

PROSPECTS

Demand for discounted products increases as the economy slows

Discounters outperformed the Romanian economy in 2018. As the economy slowed and inflation reached its highest level in recent years, Romanian consumers became more cautious with their spending, looking for the best prices and value for money.

Imported private label products continue to dominate sales

The discounters present in Romania mainly sell private label products, particularly imported ones. As Lidl continues to develop relationships with local producers, it is expected to reduce its number of imported products and increase its offering of locally produced goods, albeit still under its private label lines.

Discounters determined to continue to grow

In 2018, the discounter channel continued to grow, largely thanks to the expansion of various chains. Lidl and Rewe continued to open new Lidl and Penny Market outlets, while the third leading chain, Supeco, also opened new stores, but at a much slower pace.

COMPETITIVE LANDSCAPE

International companies dominate the channel

There were only three companies present in the discounter channel in 2018, with all being international operators. Lidl remained the dominant player, followed by Rewe and its Penny Market banner.

Penny Market launches a new shopping card

Rewe had to withdraw its old shopping card in 2018 due to the EU’s General Data Protection Regulation (GDPR). The company is now offering a new shopping card which fulfils data protection requirements and should boost consumer interest in Penny Market’s offering.

Lidl launches new products and opens green stores

In 2018, Lidl continued to launch new products under its private label lines in partnership with local producers, particularly in the fresh produce category. Romanian consumers can thus now find in its stores a variety of products made to traditional recipes.

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