Romania leads EU in non-food retail growth and there’s still room for expansion, Colliers analysis shows
<p>Consumption levels reached an all-time high in 2024, with the retail market showing significant potential for further growth if current trends persist, according to Colliers experts in their analysis of the sector. Eurostat data revealed a 13% year-on-year increase in non-food purchases this year, bringing sales to 60% above the 2018-2019 average.&nbsp;</p>

<p>Romania is recording a 58% increase in the volume of non-food retail sales, the highest in the European Union (EU), highlighting the significant growth potential of the local retail market, Colliers said.</p>

<p>Modern shopping centers with a total leasable area of more than 160,000 sqm were built this year, according to preliminary data from Colliers consultants, who point out that the local market still offers significant growth potential.</p>

<p>The city of Pitesti was in the spotlight in 2024, attracting almost 45% of the new space added to the national stock, which reached around 4.7 million sqm. Two major projects underpinned this performance: the Arges Mall, developed by Prime Kapital/MAS REI, and M Park Pitești, developed by Mitiska.</p>

<p>A preliminary estimate for 2025 is for around 200,000 sqm of new deliveries, including the 62,000 sqm expansion of the Mall of Moldova in Iasi by Prime Kapital/MAS REI. Thus, by the end of 2026, Romania could exceed the threshold of 5 million sqm of retail space, marking an important moment in the market from the point of view of developers and investors.</p>

<p>“The results obtained by various retailers show that Romania is consistently either the best or among the best in the European Union in terms of profit margins. This indicates a low level of competition, which means there is still room for new players to enter the market,” said Silviu Pop, Director ECE &amp; Romania Research at Colliers.</p>

<p>According to Eurostat data quoted by Colliers, retail companies in Romania achieved a gross operating margin of roughly 9% in 2022, outperforming countries like the Netherlands, Germany, and Poland. This favorable environment has attracted several international brands to open their first physical stores in Romania in 2024, having previously been present only through multi-brand retailers or online sales.</p>

<p>New entrants include Rituals Cosmetics and Kiko Milano in the cosmetics sector, Budmil and Bogner in the fashion sector, as well as Happy Restaurants and Hesburger in the restaurant sector. Additionally, Poland’s largest food retailer specializing in proximity concepts, Żabka, has entered the local market this year with its Froo brand.</p>

<p>In real terms, adjusted for inflation, data from the National Institute of Statistics indicate that the purchasing power of the average Romanian has doubled between 2014 and the present, according to the same analysis. Despite the uncertainty brought by the pandemic years, the resources accumulated prior to this period enabled Romania to maintain strong performance.</p>

<p>According to Eurostat, Romania recorded a 58% increase in turnover in the non-food retail sector, the highest in the European Union, Colliers further stated. In comparison, other countries such as Poland (+40%), Hungary (+14%), and the Czech Republic (+10%) experienced significantly lower growth.</p>

<p><i>irina.marica@romania-insider.com</i></p>

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