The Romanian Retail Food Market - Survival or Success for Domestic Companies

Abstract

Abstract The paper proposes an overview of the Romanian retail food market and the strategies applied by local traders to ensure business continuity. The retail food market represents a major area for international traders and local merchants. The total value of the Romanian retail market will reach 26 billion euros in 2014. In 2013, food and non-alcoholic drinks represented, on average, 41.4% of consumption. The fact that Romania joined the EU facilitated the access of European retail companies on the Romanian market. In 2013, a percentage of 53% of the total household expenditure in Romania was made on consumer goods in modern retail formats. The expansion of modern retail chains is felt increasingly by more and more local food stores, which must find new ways to survive on the market. Domestic companies were forced to close their businesses or identify strategies to ensure business continuity. The paper methodology includes statistical databases, scientific publications, market survey report research. The example of the advanced countries from the region, such as Poland, Hungary or the Czech Republic may forecast the evolution of the Romanian retail food market. A possible scenario for the local food retail sector initiatives would be on the cash & carry Polish model, which turns independent commercial units into modern locations. The organization of independent retailers in the form of an association (retailer cooperative) is another variant. In Romania there is not a powerful alliance of independent stores, such as the CBA in Hungary or the COOP in Slovakia, which are in direct competition with international traders. The symbiosis with the international retail networks, business orientation towards rural areas, the development of an integrated production chain are trade strategies for Romanian companies.