COMPETITIVE ANALYSIS – DEMO REPORT LARGE RETAILERS IN ROMANIA AUCHAN CORA CARREFOUR 1.1 Auchan 1. General data Company name: Auchan Romania SA Address (headquarters): Str. Barbu Delavrancea 13, Bucharest Phone: +4021 4080107 Fax: +4021 2232024 Web: www.auchan.ro E-mail: [email protected] Year of establishment: 2005 Ownership: Auchan Group 2. Financial data Year/Category Net turnover Average no of Net profit (mil. EUR) employees (mil. EUR) 2010 355.8 3,184 -4.6 2009 307.6 3,103 -9.7 2008 278.4 3,156 -6.7 A FRD Center Market Entry Services Demo Publication www.market-entry.ro 3. Key persons Name Position Contact details Mr. Patrick Espasa General Director Email: [email protected] Mr. Tiberiu Danetiu Marketing Director Email: [email protected] Ms. Mariana Dragan Communication Manager Email: [email protected] Tel: +4 021 4080294 4. Brief profile Auchan Romania is part of the French Group Auchan. Auchan opened its first hypermarket on the Romanian market in 2006. This store is located in Bucharest (in the Titan area) and has the surface of over 16,000 sqm. The store records a daily traffic of 30,000 – 45,000 persons and registers the biggest sales in the Auchan network in Romania. At present, Auchan has nine hypermarkets in Romania, located in Bucharest (two stores – in the Titan and Militari areas), Pitesti, Targu Mures, Cluj Napoca, Suceava, Timisoara, Constanta and Craiova. The Auchan hypermarket in Cluj Napoca was opened in November 2007, with an investment of 40 million EUR. The store is located in the Iulius Mall, has the surface of some 10,000 sqm and offers over 45,000 products. The Auchan hypermarket in Bucharest, located in the Militari area, was launched in December 2008, following an investment of 20 million EUR. The store has the surface of 12,500 sqm. The Auchan store in Constanta was launched in October 2011, in the Maritimo Commercial Center. The store has a selling surface of 12,000 sqm and sells over 50,000 products. Auchan intends to expand its network of units in Romania and to reach 14 hypermarkets by 2014. Auchan targets Braila, Galati, Brasov or Bucharest for the expansion process. A FRD Center Market Entry Services Demo Publication www.market-entry.ro Examples of prices in Auchan hypermarkets (RON): Product & brand September 2011 October 2011 November 2011 Dobrogea superior wheat 3.20 3.18 3.18 flour, category 000, 1 kg Zuzu milk, 1.5% fat, 3.70 3.79 3.79 cardboard box, 1 l Bunica oil, Pet, 1 l 7.32 7.07 7.07 Coca – Cola, Pet, 2 l 4.55 4.59 4.59 Timisoreana beer, dose, 1.98 2.09 1.99 500 ml Danone Nutriday Natural 0.91 0.98 0.96 Yogurt, 4.1% fat, 140 g Protex Fresh soap, 100 g 2.50 2.50 2.62 Dero Ozon+ automatic 3.38 3.46 3.19 laundry detergent, 400 g Lenor Spring 8.28 8.36 8.61 concentrated fabric softener, 1 l Mr. Proper universal 7.85 8.39 8.83 cleaning detergent, 1 l A FRD Center Market Entry Services Demo Publication www.market-entry.ro 1.2 Cora 1. General data Company name: Romania Hypermarche SA Address (headquarters): Str. Lipscani 102, Bucharest Phone: +4021 3000770 Fax: +4021 3055830 Web: www.cora.ro E-mail: [email protected] Year of establishment: 2002 Ownership: Louis Delhaize Group 2. Financial data Year/Category Net turnover Average no of Net profit (mil. EUR) employees (mil. EUR) 2010 327.0 3,146 15.7 2009 329.1 2,660 20.0 2008 399.0 2,883 19.7 3. Key persons Name Position Contact details Mr. Philippe Lejeune General Director Email: [email protected] Ms. Aura Radulescu Procurement Director Food Email: [email protected] Ms. Ana Maria Florea PR Responsible Email: [email protected] Phone: +40745 664250 4. Brief profile Romania Hypermarche, the operator of the Cora network in Romania, is part of the Louis Delhaize Group. The first Cora hypermarket on the domestic market was launched in October 2003 in Bucharest (Pantelimon area). This is the biggest hypermarket in Romania. The store has 840 employees and a selling surface of 16,400 sqm. The Cora Pantelimon hypermarket sells annually 500,000 packages of toilet paper, 3.2 million bottles of water, 2.2 million beer doses and bottles, 2.1 million packets of biscuits, 1.3 million bags of sugar, 1.4 million oil bottles, 2.8 million yogurts, 1.5 million litres of milk, 400,000 kg of tomatoes, 500,000 kg of potatoes, 900,000 kg of citrus, 1.2 million kg of poultry, 850,000 kg of pork meat etc. A FRD Center Market Entry Services Demo Publication www.market-entry.ro At present, the Cora network in Romania includes eight hypermarkets, located in Bucharest (three units – in Pantelimon area, Lujerului area and Sun Plaza Berceni), Cluj Napoca, Baia Mare, Constanta, Drobeta Turnu Severin and Arad. The biggest sales are recorded by the following stores: Cora Lujerului, Cora Pantelimon, Cora Sun Plaza – all in Bucharest - and Cora Cluj Napoca. The Cora store in Drobeta Turnu Severin was opened in March 2011. The total investment in this unit amounts to some 22 million EUR. The Cora store in Baia Mare was opened in November 2010, following investments of some four million EUR. The store is located within the Gold Plaza Mall and has a selling surface of 4,500 sqm. This was the first Cora store opened in smaller cities, with population lower than 100,000 inhabitants . The Cora hypermarket located in the Sun Plaza in Bucharest was launched in February 2010. The store has a selling surface of 13,000 sqm and sells over 80,000 products. For this store, the retailer hired some 700 persons. In 2012 Cora will open three units, located in Bucharest (in Park Lake Plaza Titan), Slobozia and Bacau. Also, the retailer owns lands in Brasov, Constanta and Galati. In Brasov, the retailer intends to open a Cora store and a commercial gallery with the surface of 5,000 sqm. In Constanta, the retailer will open the Corall commercial center. In 2011, Cora received from the EBRD a credit of 210 million EUR in order to finance the expansion process on the domestic market. Cora estimates a turnover of 330 - 335 million EUR for 2011 in Romania. The private brands have a contribution of 12 - 14% in the Cora network’s turnover in Romania and their percentage will continue to grow. The retailer’s private brands are: - Cora (foods, detergents, cosmetics, sport, DIY etc) - Winny (foods) - Traditia Gustului (foods) - Nature Bio (organic products) - Prieten Vechi (wine) - L'ame du terroir (wine) - Prima (alcoholic drinks) - Gourmand (French traditional products) A FRD Center Market Entry Services Demo Publication www.market-entry.ro Examples of prices in Cora hypermarkets (RON): Product & brand September 2011 October 2011 November 2011 Margaritar sugar, paper 4.69 4.60 4.56 bag, 1 kg Zuzu milk, 1.5% fat, 3.70 3.69 3.99 cardboard box, 1 l Borsec carbonated 2.05 2.04 2.03 mineral water, Pet, 1.5 l Timisoreana beer, dose, 1.99 2.01 2.01 500 ml Jacobs Kronung Premium 11.99 11.96 11.99 Alintaroma coffee, 250 g Milka Lapte din Alpi 3.64 3.73 3.74 chocolate tablets, 100 g Danone Nutriday Natural 0.99 0.99 0.95 Yogurt, 4.1% fat, 140 g Colgate Advanced 7.59 7.15 7.03 Whitening, toothpaste 150 g / 100 ml Protex Fresh soap, 100 g 2.79 2.49 2.49 STR8 Original aerosol 11.26 11.19 11.76 deodorant, 150 ml A FRD Center Market Entry Services Demo Publication www.market-entry.ro 1.3 Carrefour 1. General data Company name: Carrefour Romania SA Address (headquarters): Bd. Timisoara 26Z, Bucharest Phone: +4021 2067400 Fax: +4021 2067451 Web: www.carrefour.ro E-mail: [email protected] Year of establishment: 1999 Ownership: Carrefour Group 2. Financial data Year/Category Net turnover Average no of Net profit (mil. EUR) employees (mil. EUR) 2010 930.9 7,123 33.4 2009 1,027.2 7,738 20.8 2008 1,032.0 7,760 20.1 3. Key persons Name Position Contact details Mr. Francois Melchior General Manager Email: De Polignac [email protected] Mr. Vlad Ardeleanu Commercial Director Email: [email protected] Ms. Andreea Mihai Marketing Director Email: [email protected] Phone: +4021 8059421 Ms. Alina Horgea - Fresh Products Acquisition Email: [email protected] Manager 4. Brief profile Carrefour Romania is part of the French Group Carrefour. Carrefour is present both on hypermarket and supermarket segments in Romania. The first Carrefour hypermarket on the domestic market was launched in 2001, in the Militari area in Bucharest, this representing the first hypermarket on the domestic market. The impact of the new retail format brought by Carrefour in Romania was seen immediately A FRD Center Market Entry Services Demo Publication www.market-entry.ro in the sales - in the first six months from its launching in 2001, the sales of the Carrefour Militari store exceeded 45 million EUR, a record amount for that period in Romania. The store’s turnover in 2002 recorded over 80 million EUR and the French Group decided to expand on the domestic market. The second store launched by Carrefour in Romania - Carrefour Orhideea in Bucharest - represented another premiere for the local market: a hypermarket located near the city centre. This launching was followed by an expansion process that included one - two new hypermarkets per year. In 2008, Carrefour opened ten stores, with investments estimated at over 300 million EUR, reaching 21 hypermarkets in Romania.