Romania’s Supermarket War: Lidl Following Overkill Strategy

Written by on October 24, 2016 in Bulgaria, Business, Economy - No comments

While Rewe Romania is supposedly closing stores, the third largest retailer in the country is ready to increase the number of its stores substantially. 

Lidl Romania manager Frank Wagner told the publication Ziarul Financiar, his company was getting ready to open another 100 stores in Romania, on top of the 200 they already have. With a turnover of 1.1 billion euro last year, Lidl is still behind, compared to the two biggest supermarket chains in Romania, Kaufland and Carrefour. But Wagner seems to be determined to catch up.

In a country with almost 20 million inhabitants, almost three times as many as Bulgaria has, 300 supermarkets is a good number, which can increase customer connectivity and turnovers substantially, according to experts. With 300 stores, Lidl will probably be able to reach a huge part of the population. In Bulgaria, 100 is a large number, while in Romania it is three times that.

The Romanian publication quoted Wagner saying there was room for development. “We want to maintain the pace of expansion of 10 to 15 stores per year and we might find opportunities to accelerate the process.” That seems to be a diplomatic statement, which translates to “We will attack the competition wherever and whenever we can, using stealth bombers.”

Lidl came to Romania in 2011, by purchasing the Plus discounter network, which gave them 107 stores, with an impressive price tag of 380 million Euro. Within five years, they expanded their network to 200 stores. Now, they are shifting gears yet again. According to Wagner, Lidl’s target is a turnover of 2 billion Euro per year.

By im.




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