RSS
GfK Study: Modern retail trading jumped to 60-percent of total trade
Modern retail trading is an important pillar for increased consumption, having jumped to 60-percent of total trade in Romania in the first quarter of 2016, according to a recent GfK study.
"While up to 2008, retail trade would advance 2-3 percentage points a year to the detriment of traditional trading, the rise in Q1, 2016 was significant, 4 percentage points from Q1, 2015," according to GfK Romania Consumer Goods & Retail Director Raluca Raschip.
Hypermarkets recorded the highest rate of growth of all the retail trade channels, having added one percentage point to their share in the market, ending at 29 percent on rises in the size of purchases. Besides higher purchases per visit, the supermarkets were also the main destination of Romanian households, having captured 17 percent of them. Discount retailers reported a different rising trajectory as they managed to also increase frequency of purchases.
"Romanian consumers eased off some more as economic pressure became less exerting. The first quarter of 2016 saw a new beginning for the fast-moving consumer goods (FMCG) players as the purchasing power of Romanians went up on a cut in the Value-Added Tax for food and non-alcoholic beverages, and also on wage increases. The additional income benefits them as it has gone back into consumption, with signs so far pointing to continual growth throughout the year," says Raschip.
The latest household consumption studies show Romanians opt for larger purchases, especially when using modern trade channels.
The first three months of 2016 witnessed a continuation of the consumer trends that followed the first VAT cuts in June 2015. Consumer goods are now up 0.4 percent, amidst a 6-percent food deflation, which gives a 3.5-percent increase in household purchases. Romanians also continued on an up-trading trend, meaning they switched to buying more expensive product brands and categories.
Fish and sea fruit, cheeses and cider reported that highest sale dynamics, offering brands and retailers opportunities to innovate and create unique experiences for consumers. Rises in these categories, along with increases in other items such as dairy products, salted snacks, water, nonalcoholic as well as alcoholic beverages, wine and also toiletries clearly indicate the needs of consumers for diversification and trial of new products.
The results unveiled by Raschip are included in the latest GfK Consumer Panel Services study monitoring household consumption for all categories of fast-moving consumer goods in 3,000 households in Q1, 2016.
Operational in the local market since 1992, GfK Romania has been a leading market researcher, with a business turnover of 16.2 million euros in 2014. The activities of GfK Romania regard two sectors: consumer choices and consumer experiences.