Home and Garden Specialist Retailers in Romania

2021 DEVELOPMENTS

Sales continue to rise as consumers invest in improving the home environment

Home and garden specialist retailers registered another positive performance in 2021 and this was mainly due to the fact that huge numbers of Romanians continued to invest in improving and developing their homes. This trend began at the peak of the COVID-19 pandemic during 2020, when the strict approach taken to home seclusion and social distancing meant that consumers had very good reasons to spend money making their homes more pleasant places to work, study and spend free time in.

Higher unit prices for furniture due to rising commodity prices boost sales growth

One of the key factors underpinning the strong value sales growth recorded in homewares and home furnishing stores in 2021 was the rising prices being charged for furniture. The cost of various inputs for the manufacture of furniture has been rising in recent years, with the pressure that has come on the supply of timber at international level a major reason for this.

Shift towards e-commerce as consumers continue to avoid shopping in stores

One of the most important trends to emerge from the COVID-19 pandemic across the Romanian retailing industry during 2020 and 2021, the enormous shift towards e-commerce, was highly apparent in home and garden specialist retailers during 2021. The very strong growth recorded in home improvement and gardening e-commerce and homewares and home furnishings e-commerce over the course of 2020 motivated all of the leading players operating chains of home and garden specialist retailers stores to intensify their efforts to develop comprehensive omnichannel operations.

PROSPECTS AND OPPORTUNITIES

Rising demand and numerous new store openings to be seen during the forecast period

The positive performance that is expected to be seen in home and garden specialist retailers during the forecast period is expected to be a reflection of robust demand for a wide variety of home and garden products among an increasingly affluent population who have become far more focused on the home environment since the onset of the COVID-19 pandemic. In response to rising demand, the category’s leading international chains are expected to continue with the expansion plans that emerged amidst elevated demand during 2020 and 2021, with new outlet opening expected to be seen on a very regular basis.

The development of e-commerce expected to continue presenting competition

E-commerce is expected to continue gaining ground in Romania’s retailing industry over the forecast period this makes it increasingly likely that consumers will choose e-commerce over store-based retailing when buying a wide variety of home and garden products. However, with sales in home improvement and gardening e-commerce and homewares and home furnishings e-commerce dominated by store-based retailers with a robust approach to omnichannel retailing, the leading chains in home and garden specialist retailers are unlikely to face enormous challenges as consumers increasingly prefer e-commerce to shopping in their stores.

A more robust approach to advertising expected to be seen as demand continues to rise

With demand for a wide variety of home and garden products expected to continue increasing substantially over the forecast period, the leading players in home and garden specialist retailers can be expected to focus increasingly on their advertising and marketing activities in an effort to capture the attention of the Romanian population and cash in on rising demand. Although the rising cost of living and the financial pressures created by the COVID-19 pandemic are expected to continue suppressing consumer spending during the forecast period, long-term economic development means that spreading affluence and the expansion of Romania’s affluent urban middle-class can be expected to underpin rising demand across the home and garden industry.