Discounters in Romania

PROSPECTS

Growth is driven by attractive price points, as price-sensitivity remains a key driver of sales for discounters

Discounters record strong growth in 2019, benefiting from offering a combination of convenience and low prices. Although incomes are on an upward trend, Romanians remain price-sensitive and show a strong propensity for bargains.

Private label ranges are key to the success of discounters, with many offering local and imported private label goods

In 2019, discounters raised consumers attention by offering a big proportion of private label goods, which exceed the presence of other brands. Few brands with notoriety remain on the shelves of discounters, with these including global players such as Coca-Cola, Milka and Orbit, due to their high levels of demand.

Expansion strategies, low prices and good product assortment will result in success for discounters over the forecast period

In 2019 and over the review period, discounters 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 players dominate, as local players are yet to enter the competitive landscape

In 2019, there were only three players present in the discounter channel, all being international operators. Lidl remained the dominant player, followed by Rewe and its Penny Market stores.

Lidl remains the clear leader of the landscape, offering Romanian tastes, eco-friendly stores and revamping its designs to offer a more pleasant shopping environment

Lidl remains the leader of the landscape, as it continued to launch new products under its private label lines during the review period, particularly within fresh produce. Lidl is focusing on offering consumers traditional recipes, passed down from generation to generation, with its products sold under the Camara Noastra label, promoted as offering an authentic Romanian taste.

Rewe SRL remodels its Penny Market stores while offering consumers an updated loyalty card

In 2019, Rewe SRL continued to adapt and remodel its Penny Market stores. The aim is for Penny Market stores to all have a stylish design, resulting in an improved shopping experience.

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