Large retailers trust Eastern Europe

Despite consumption decrease or stagnation: good retail concepts are always in demand, the expansion of the big players in the CEE and SEE region goes on.

The consumption expenditures of Eastern Europeans – in some countries mainly financed by loans - will no longer show strong growth rate. In some countries we will witness a slight decreases or a stagnation of the consumption expenditures. The financial sector spends no more money for real estate projects. Does the expansion in the retail sector come to a standstill? Maybe in some cases. But with good concepts expansion is going to continue.

Thus different retail players still opened some new stores in Eastern European countries. Tesco opened more than 50, Carrefour around 8, Ikea 2 or Baumax about 7 new outlets in the CEE-/SEE region. Right now also the hour of discount concepts strikes: Penny opened its 100th store in Romania and in only two months the first 20 stores in Bulgaria. Further 25 Penny supermarkets shall be opened in Romania in 2010 as well.

Smaller retailers or local ones which financed their expansion by loans will face real trouble. They have to optimize and eventually give up locations with low profits.