Companies began to feel the effects of the financial crisis which has been impacting Romania since the end of 2008, and, as a result, Carrefour’s business has significantly slowed its growth pace in the first six months, by up to tenfold, while the sales of the largest company in this sector, Metro Cash&Carry, posted regional level declines, mainly due to the depreciation of local currencies, including the leu. Sales of the German Metro retail group in Eastern Europe fell 12 percent in the first half of 2009, to €7.3 billion, from €8.3 bln in H1 2008.
In order to adjust to the new market conditions, commerce networks have expanded own brand product ranges, in an attempt to maintain a constant level of profitability, in spite of the decline in the growth rates of sales. Own brand products have some of the highest profit margins.
The sales of Carrefour Romania, leader of the hypermarket segment, soared 4.8 percent in the first half of 2009, to €532 million, compared to the first six months of 2008, when the increase was of 40.3 percent, but fell 6.1 percent like-for-like, according to the French group’s financial report.
