People of Cushman & Wakefield Echinox
Bucharest, January 2019: Large retail chains operating mainly in shopping centers maintained an average growth rate of 12% in 2018, similar to 2017 and double the advance in consumption, which increased by 5.9% during the first ten months of the year, according to the second edition of Retailers’ METRICS study by Cushman & Wakefield Echinox,.
The study examined the expansion and turnover growth of 88 retail companies operating stores under more than 100 international and local brands in FMCG, Fashion, Electro-IT, Cosmetics, Sports, Footwear, Kids and Toys, Jewelry, Food and Beverages, Home & Deco and Bookstores.
The surveyed retailers had more than 5,054 stores at the beginning of 2018, and they expanded their networks by adding 487 new units over the year, compared to 522 openings in 2017. In regards to the financial performance, the cumulative turnover of these companies is estimated at 15.37 billion euros in 2018, representing a market share of almost 40% of the total estimated turnover of the retail sector.
Cristi Moga, Head of Research, Cushman & Wakefield Echinox: “The 2018 evolution shows that large retailers with tens or hundreds of stores continue to gain market share both organically and by expansion. Even if 2018 was not a breakthrough year in terms of deliveries of new retail space, and the few openings were also concentrated in the last months of the year, most retailers have found resources to grow based on wage increases and purchasing power, inflation and also online commerce.”
Compared to 2017, the pace of expanding retail networks has slowed down in most sectors, both due to limited space options and the continuation of the optimization process by a number of retailers.
The largest turnover increases are expected for retailers selling children’s articles (39%), clothing (17%) and Home & Deco products (16%).
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