Shopping: Traditional Commerce in Romania: Thriving Through Reinvention in 2024
- futureofromania
- Apr 28
- 13 min read
Why it is the topic trending:
Unexpected Growth: Despite the expansion of modern retail (supermarkets, hypermarkets, discounters), traditional commerce in Romania experienced a significant growth in sales (over 10%) in 2024, outperforming most modern formats. This unexpected resilience makes it a trending topic.
Relevance in a Changing Market: In a retail landscape dominated by modern players, the fact that traditional small, local stores remain the primary shopping channel in Romania is noteworthy and prompts analysis of the reasons behind this.
Unique Market Dynamics: The article highlights the unique characteristics of the Romanian market, such as the large rural population with limited access to modern retail, which contributes to the strength of traditional commerce. Exploring these dynamics is a trending subject in business and economics.
Adaptation and Reinvention: The article emphasizes that traditional commerce is not stagnant but is actively adapting and modernizing by adopting European best practices in assortment and services. This reinvention story is interesting and newsworthy.
Comparison with Modern Retail Performance: The direct comparison of the growth rate in traditional commerce with that of supermarkets (twice as fast) and hypermarkets (six times as fast) provides a compelling narrative about the current state of the retail market in Romania.
Overview:
The article from Ziarul Financiar discusses the surprising strength and resilience of traditional commerce in Romania in 2024. Despite a decrease in the number of stores over time due to competition from modern retail, traditional small shops have experienced a significant 10.7% increase in sales, outpacing the growth of supermarkets and hypermarkets. The article attributes this to several factors, including the large rural population with limited access to modern retail, the adaptation and modernization efforts of traditional retailers, and their continued importance as the primary shopping channel for fast-moving consumer goods (FMCG) with a market share of 34%. The article suggests that traditional commerce is not dying but rather reinventing itself in a market where modern retail continues to expand.
Detailed findings:
Sales in traditional commerce grew by 10.7% in 2024, the second-fastest rate in the FMCG market after discounters (10.9%).
This growth rate is double that of modern supermarkets and six times that of hypermarkets.
Traditional commerce remains the most important shopping channel for FMCG in Romania, with a market share of 34%.
Hypermarkets hold a 22% market share, and discounters hold 21%.
Approximately half of Romania's population lives in rural areas where the presence of large retail chains is limited.
Profi is the only major modern retailer that has significantly invested in the rural market with its adapted "Loco" format.
While the number of traditional stores has decreased significantly over the past three decades (from 150,000 to 55,000-60,000), the remaining players are adapting and becoming stronger.
There are about 3,800 modern retail stores in Romania (hypermarkets, supermarkets, discounters, modern proximity stores).
Initiatives like Metro's "LaDoiPași" franchise program aim to support the survival and development of traditional commerce.
Traditional retailers are increasingly adopting European best practices in terms of product assortment and service quality.
traditional commerce in Romania is thriving for several key reasons:
Large Rural Population: Approximately half of Romania's population lives in rural areas where the presence of large retail chains is still limited. This provides a significant customer base for local, traditional stores.
Adaptation and Modernization: Traditional store owners are increasingly adopting better practices in managing their inventory, diversifying their product range to meet customer needs, and improving their overall service quality. This allows them to better compete with modern retailers.
Proximity and Convenience: For many Romanians, especially those in rural areas or even in busy urban neighborhoods, traditional stores offer unparalleled convenience due to their close proximity to where people live. This is particularly valuable for quick, everyday purchases.
Community Connection and Trust: Local shops often foster stronger relationships with their customers, built on trust and personalized service. 1 This sense of community and familiarity is a significant draw for many shoppers.
Slower Rural Expansion of Modern Retail: While modern retail is growing, its expansion into rural parts of Romania has been slower compared to urban areas, leaving a gap that traditional commerce continues to fill.
Support Networks: Initiatives like Metro's "LaDoiPași" franchise program provide traditional retailers with support, resources, and a framework for modernization, helping them to remain competitive.
Key takeaway:
Despite the dominance of modern retail formats, traditional commerce in Romania is proving to be remarkably resilient and is thriving through adaptation and its strong presence in rural areas, experiencing sales growth that surpasses most modern channels.
Main trend:
The main trend is The Resurgence and Reinvention of Traditional Commerce.
Description of the trend (please name it):
The "Local Anchor" Phenomenon: This trend describes the unexpected and robust performance of traditional, small-scale retail in Romania. Despite predictions of its decline in the face of modern retail expansion, traditional commerce is not only surviving but flourishing by acting as a "local anchor" within communities, particularly in rural areas with limited access to larger chains. This involves adapting to modern consumer expectations through improved product variety and services, while maintaining its inherent advantages of proximity, community connection, and personalized interaction. The "Local Anchor" phenomenon highlights the enduring importance of these local stores in the Romanian retail landscape.
What is consumer motivation:
Accessibility and Convenience: For a significant portion of the population, especially in rural areas, traditional stores offer unparalleled accessibility and convenience due to their proximity.
Community Connection and Trust: Traditional stores often foster stronger relationships with their customers, built on trust and personalized service. This community connection is a significant motivator for many shoppers.
Supporting Local Economy: Many consumers are motivated by the desire to support local entrepreneurs and contribute to their community's economic well-being.
Familiarity and Habit: For some, especially older generations, shopping at the local store is a long-standing habit and offers a familiar and comfortable experience.
Specific Product Needs: Local stores might stock products that are not readily available in larger chains, catering to specific local tastes or needs.
What is driving trend:
Large Rural Population: The fact that approximately half of Romania's population resides in rural areas with limited access to modern retail is a primary driver.
Adaptation and Modernization by Traditional Retailers: The willingness of traditional store owners to adopt better inventory management, diversify their product range, and improve their services is crucial.
Proximity Advantage: Small local stores offer immediate convenience, especially for quick, everyday purchases.
Franchise and Support Networks: Programs like "LaDoiPași" provide support and a framework for traditional stores to modernize and compete more effectively.
Slower Expansion of Modern Retail in Rural Areas: While some modern retailers are starting to explore rural areas, their expansion has been slower, leaving a significant gap filled by traditional commerce.
What is motivation beyond the trend:
Preservation of Local Communities: Beyond just shopping, these local stores often serve as social hubs and contribute to the fabric of their communities, which consumers may implicitly value.
Desire for Personal Connection: In an increasingly impersonal world, the interaction with a known store owner can provide a sense of connection and belonging.
Resistance to Homogenization: Some consumers may prefer the unique character and product offerings of local stores compared to the standardized experience of large chains.
Description of consumers article is referring to (what is their age?, what is their gender? What is their income? What is their lifestyle):
The article refers to a broad range of consumers:
Age: It likely includes consumers of all age groups. Older generations in rural areas may rely more heavily on traditional stores due to habit and limited mobility. Younger generations in rural areas may also use these stores out of necessity, but increasingly might also have access to modern retail options. In urban areas, consumers choosing traditional stores might do so for convenience or to support local businesses.
Gender: Both men and women are likely customers of traditional stores, as they cater to household and personal needs.
Income: Consumers across various income levels likely shop at traditional stores. In rural areas, where income levels might be lower on average, these stores could be essential. In urban areas, consumers with higher incomes might choose them for convenience or a specific shopping experience.
Lifestyle: The lifestyle of consumers in rural areas, often characterized by close-knit communities and potentially limited transportation options, makes traditional stores a natural fit. In urban areas, busy lifestyles might lead some to prefer the quick and convenient access offered by local traditional shops.
Conclusions:
The article concludes that traditional commerce in Romania is far from dying and is demonstrating remarkable resilience and adaptability. Its strong performance in 2024, driven by its prevalence in rural areas and the modernization efforts of its operators, highlights its continued importance in the Romanian retail market. Despite ongoing competition from modern retail, traditional stores are maintaining their position as the primary shopping channel for FMCG, suggesting a unique dynamic in the Romanian consumer landscape.
Implications for brands:
Importance of Traditional Channel: Brands selling FMCG in Romania must recognize the continued significance of the traditional trade channel and tailor their distribution and marketing strategies accordingly.
Rural Market Focus: Brands seeking to reach the large rural population need to prioritize partnerships with traditional stores.
Localized Product and Promotion Strategies: Strategies should be adapted to the specific needs and preferences of consumers who shop at traditional stores, which might differ from those of modern retail customers.
Support for Traditional Retailers: Brands could benefit from initiatives that support the modernization and development of traditional stores, such as those offered by Metro.
Implication for society:
Economic Stability for Rural Communities: The success of traditional commerce provides economic stability and livelihoods for many small business owners and communities in rural areas.
Preservation of Local Character: Traditional stores often contribute to the unique character and social fabric of their communities.
Competition and Consumer Choice: The continued presence of a strong traditional retail sector ensures competition in the market, providing consumers with more choices.
Implications for consumers:
Continued Access to Local Shopping: Consumers, especially in rural areas, will continue to have convenient access to essential goods through traditional stores.
Potential for Improved Quality and Services: As traditional stores modernize, consumers can expect better product assortments and service quality.
Support for Local Businesses: Consumers who value supporting local entrepreneurs will continue to have a primary avenue for doing so.
Implication for Future:
Coexistence of Traditional and Modern Retail: The future of Romanian retail will likely involve a continued coexistence of a strong traditional sector alongside the ongoing expansion of modern formats.
Further Modernization of Traditional Trade: We can expect to see continued efforts by traditional retailers to adopt modern practices and technologies to enhance their competitiveness.
Potential for Integration: There might be opportunities for greater integration between traditional and modern retail, such as traditional stores leveraging online platforms or modern retailers partnering with local shops for distribution.
Consumer Trend (name, detailed description):
"Hyperlocal Shopping Loyalty": This consumer trend describes the continued loyalty of Romanian consumers, particularly in rural areas, to their local traditional stores. This loyalty is driven by convenience, community ties, trust in local shopkeepers, and a desire to support the local economy, leading them to prioritize these stores for their everyday shopping needs.
Consumer Sub Trend (name, detailed description):
"Modernization Expectation in Traditional Retail": While loyal, consumers are increasingly expecting traditional stores to offer a more modern shopping experience, including a wider variety of products, better organization, and potentially even digital payment options.
Big Social Trend (name, detailed description):
"The Enduring Strength of Local Communities": The resilience of traditional commerce underscores the continued importance and strength of local communities in Romania, particularly outside major urban centers.
Worldwide Social Trend (name, detailed description):
"The Fight for Independent Retail Survival": In many parts of the world, independent retailers face intense competition from large chains and online commerce. The Romanian case offers an interesting perspective on how local businesses can adapt and thrive.
Social Drive (name, detailed description):
"The Need for Convenience and Connection": The success of traditional commerce highlights the enduring human needs for convenient access to goods and a sense of connection within one's local community.
Learnings for brands to use in 2025 (bullets, detailed description):
Acknowledge Regional Differences: Recognize that the Romanian retail market is not homogenous and that traditional channels hold significant power in certain regions, particularly rural areas.
Invest in Distribution Networks for Traditional Trade: Ensure efficient and reliable distribution to reach the widespread network of traditional stores.
Develop Tailored Marketing Materials: Create marketing materials and promotions that resonate with the consumers who shop at traditional stores, considering their specific needs and preferences.
Build Strong Relationships with Traditional Retailers: Invest time and resources in building strong partnerships with local store owners, offering support and collaborative opportunities.
Consider Digital Integration for Traditional Stores: Explore ways to help traditional retailers integrate digital tools for inventory management, ordering, or even online sales to complement their physical presence.
Strategy Recommendations for brands to follow in 2025 (bullets, detail description):
Develop Specific Sales and Distribution Channels for Traditional Trade: Create dedicated teams and processes to effectively serve the needs of traditional retailers.
Offer Trade Promotions and Incentives: Implement specific promotions and incentives designed to encourage traditional stores to stock and promote your products.
Provide Training and Support for Modernization: Offer training and resources to help traditional store owners adopt modern retail practices in areas like merchandising and customer service.
Explore Partnerships with Franchise Programs: Collaborate with franchise programs like "LaDoiPași" to gain access to a network of modernized traditional stores.
Invest in Understanding Local Consumer Preferences: Conduct market research at a local level to understand the specific product preferences and needs of consumers who shop at traditional stores in different regions.
Final sentence (key concept) describing main trend from article (which is a summary of all trends specified):
In 2024, traditional commerce in Romania defied expectations by demonstrating significant sales growth through its enduring local presence and adaptive reinvention, proving its continued vital role in the national retail landscape.
What brands & companies should do in 2025 to benefit from trend and how to do it:
Brands and companies should recognize the strength and unique characteristics of traditional commerce in Romania and develop strategies to effectively engage with this vital channel by:
Building strong distribution networks that reach the widespread network of small, local stores.
Tailoring product offerings and marketing campaigns to the preferences of consumers who shop at these stores, especially in rural areas.
Investing in relationships and providing support to traditional retailers to help them thrive in a competitive market.
Exploring opportunities to integrate digital solutions that can enhance the efficiency and reach of traditional stores.
Final note:
Core Trend:
Name: Traditional Trade Revival
Detailed Description: Traditional commerce in Romania is not declining as expected but is experiencing a resurgence and growth due to its strong presence in rural areas and its adaptation to modern market demands.
Core Strategy:
Name: Hyperlocal Engagement
Detailed Description: Brands need to adopt a hyperlocal engagement strategy that recognizes the unique dynamics of traditional retail and the preferences of consumers in local communities, particularly in rural regions.
Core Industry Trend:
Name: Omnichannel Retail Evolution (Romanian Context)
Detailed Description: The Romanian retail market is evolving towards a more nuanced omnichannel landscape where traditional and modern channels coexist and potentially integrate, with traditional commerce maintaining a strong foothold.
Core Consumer Motivation:
Name: Convenience, Community, and Local Support
Detailed Description: Romanian consumers, particularly in rural areas, are primarily motivated by convenience, a sense of community connection with local shopkeepers, and the desire to support their local economy when choosing to shop at traditional stores.
Final Conclusion:
The surprising vitality of traditional commerce in Romania presents a valuable opportunity for brands and companies in 2025. By understanding the drivers behind this trend and tailoring their strategies to effectively engage with this channel, businesses can tap into a significant segment of the Romanian consumer market and contribute to the continued success of local communities.
Here is a detailed breakdown of the Core Trend, "Traditional Trade Revival," as it pertains to the Romanian retail market:
Core Trend Detailed:
Description: "Traditional Trade Revival" describes the unexpected and significant growth and resilience of small, independent retail stores in Romania in 2024, defying the expected dominance of modern retail formats like supermarkets and hypermarkets. This revival is characterized by a strong sales performance, accounting for the second-highest growth rate in the FMCG market, and maintaining the largest overall market share. It signifies an adaptation and strengthening of traditional commerce, particularly in rural areas, where it remains a crucial shopping channel due to limited access to modern retail options and strong community ties.
Key Characteristics of the Trend (summary):
Significant Sales Growth: Traditional commerce experienced a notable 10.7% increase in sales in 2024.
Market Leadership: This sector holds the largest share of the FMCG market in Romania (34%).
Rural Dominance: Traditional stores are the primary shopping option for a substantial portion of the Romanian population living in rural areas.
Adaptation and Modernization: Traditional retailers are increasingly adopting modern retail practices to improve their competitiveness.
Resilience Against Modern Retail Expansion: Despite the ongoing growth of supermarkets, hypermarkets, and discounters, traditional commerce continues to thrive.
Market and Cultural Signals Supporting the Trend (summary):
High Percentage of Rural Population: Approximately half of Romania's population lives in rural areas with limited access to modern retail chains.
Slower Rural Expansion of Modern Retail: Major modern retailers have been relatively slow to expand into rural areas, leaving a significant market for traditional stores.
Data on Market Share and Growth: Market research data from NielsenIQ clearly indicates the leading market share and strong growth rate of traditional commerce.
Local Support and Community Ties: Traditional stores often benefit from strong relationships with their local communities and the trust they have built over time.
Emergence of Support Networks: Initiatives like Metro's "LaDoiPași" franchise program are actively supporting and modernizing traditional retailers.
How the Trend Is Changing Consumer Behavior (summary):
Continued Loyalty to Local Stores: A significant portion of consumers, particularly in rural areas, continues to prioritize shopping at their local traditional stores for convenience and community connection.
Increased Expectations for Traditional Stores: While loyal, consumers are also starting to expect a better shopping experience in traditional stores, including a wider variety of products and improved services.
Value Placed on Accessibility and Proximity: For everyday needs and quick purchases, consumers in both rural and some urban areas continue to value the convenience and proximity offered by traditional stores.
Support for Local Businesses: A segment of consumers actively chooses to shop at traditional stores to support local entrepreneurs and the community economy.
Implications Across the Ecosystem (For Brands and CPGs, For Retailers, For Consumers, summary)):
For Brands and CPGs: Brands must recognize the crucial role of the traditional trade channel in Romania and invest in effective distribution and marketing strategies tailored to this segment. Reaching rural consumers effectively requires a strong presence in traditional stores.
For Retailers: For traditional retailers, the implication is the need to continue adapting and modernizing their operations to meet evolving consumer expectations and maintain their competitive edge. Modern retailers should also consider the potential of the rural market and explore strategies to enter or partner with existing traditional stores.
For Consumers: Consumers in rural areas will continue to have a vital source for their daily needs. Consumers across the country benefit from a competitive retail landscape where traditional stores provide choice and convenience, and the modernization of these stores can lead to an improved shopping experience.
Strategic Forecast: The "Traditional Trade Revival" is likely to persist in Romania in the coming years, driven by the demographic landscape and the ongoing adaptation of traditional retailers. While modern retail will continue to expand, the strong foundation and local connections of traditional commerce will ensure its continued significance. Brands and retailers who understand and cater to this dynamic will be well-positioned for success in the Romanian market.
Final Thought: The enduring strength of traditional commerce in Romania underscores the importance of local connections, convenience, and adaptability in the retail sector, demonstrating that even in the face of globalization and modern advancements, local businesses can thrive by understanding and serving their communities.
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