Turnover Dynamics in the Retail Sector Assessment of the economic and social impact of the retail sector in Romania Ion Anghel (Coordinator) Nicolae Istudor Tănase Stamule Adriana AnaMaria Davidescu Vasile Alecsandru Strat Mihaela Hrisanta Mosora Cristina Ștefania Curea Sorin Anagnoste
The retail trade sector in non-specialized stores (NACE 4711) represents a backbone of Romania’s economy, with a substantial contribution both economically and socially. Focused on the sale of food products, beverages, and tobacco, this sector generates a complex network of interdependencies with fields such as agriculture, logistics, energy, and warehousing services, thereby amplifying its impact on the entire national economy. It is one of the fastest-growing sectors of the economy, with an average annual growth rate of +9.4% in turnover and 10.4% in labor productivity between 2008 and 2023, thus having a strong positive impact on revenues and contributions to the state budget. Based on a Leontief-type input-output analysis, a significant multiplier effect is evident. Each additional leu generated in this sector produces between 1.7 and 2.34 lei in the economy, depending on the type of multiplier. Additionally, each leu invested generates over 1.7 lei in wage income and nearly 2 lei in gross value added. The sector makes a consistent contribution to GDP formation, and in 2023 it accounted for 6.19% of Romania’s gross domestic product, marking a 29% increase compared to the previous year—a clear indication of its expansion and economic spillover effect. The sector’s impact also extends to employment, supporting over 680,000 jobs, of which approximately one third are direct, while the rest are indirect and induced. This capacity to sustain employment highlights the sector’s systemic role in maintaining labor market balance, particularly in adjacent industries such as distribution, transportation, and goods production. From a financial perspective, commercial markup margins in 2023 are reasonable, with an average of 18.6%, though notable differences exist between small companies (24.3%) and large companies (17.2%). Operational profitability remains at a normal level (4%), indicating overall financial stability. The investment level is significant—3.72 billion lei in 2023—most of which comes from large companies. These investments cover a wide range of priorities, from logistics infrastructure to the digitalization of operations. The analyzed sector is a significant contributor to the state budget, particularly through VAT and social contributions. In 2023, it contributed a total of 8,109 million lei to the state budget (excluding property taxes, taxes on the use of goods, etc.), representing 3.2% of total VAT collected and 2.8% of corporate income tax, among others. Assessment of the economic and social impact of the retail sector in Romania
Digital transformation and innovation are key directions for investments in the sector. Most companies in the sector have carried out digitalization, automation, and new service launch projects in recent years. Investments in research and development are still moderate, but they reflect a clear focus on operational efficiency, improving customer experience, and integrating emerging technologies such as AI and IoT. A distinctive feature of the sector is its increasingly visible involvement in social responsibility and sustainability. Companies allocate dedicated budgets for ESG initiatives, particularly in education, environmental protection, support for vulnerable communities, and the circular economy. The community investment market reached 100 million euros annually in 2024, with approximately 20% of this amount coming from the retail sector—clear evidence of its engagement in social development. Initiatives such as Timp pentru Bine, Start ONG, or Via Profi demonstrate a strong commitment to inclusion, education, and support for disadvantaged groups. However, companies in the sector face challenges such as the shortage of skilled labor and the high costs of implementing ESG projects, which drives increased interest in investments in human capital and professional training. Overall, the retail sector (CAEN 4711) is undergoing a profound transformation, shifting from a model focused on quantitative expansion to one oriented toward quality, sustainability, and efficiency. The integration of technology with social and environmental impact reflects the sector’s maturity, as it becomes not only a major economic contributor but also an active player in building a sustainable and inclusive economy. The responses to the questionnaire addressed to both retail and non-retail companies highlight a strong commitment to strategic investment directions focused on digital transformation, sustainability, and operational efficiency. These responses reflect current industry trends and confirm that major retail companies no longer view investments merely as capital expenditures, but as essential tools for modernization, adaptation, and sustainable growth. The commercial markup margin in the sector in 2023 had a reasonable average level of 18.6%, with significant differences between small companies (24.3%) and large companies (17.2%). The operating profit margin in the sector in 2023 had a normal average level of 4.0%, with relatively small differences between small companies (5.8%) and large companies (3.5%). The sector attracts significant investments, with total investments amounting to 3,725 million lei in 2023 (78.5% provided by companies with a turnover exceeding 100 million lei), representing 6.7% of the total assets recorded as of December 31, 2022.
Regarding investments in technology and innovation, most companies have undertaken projects over the past 3–5 years primarily focused on process digitalization, automation of operations, and the launch of new products or services. Almost all companies are still exploring opportunities in these areas. The most common objectives pursued have been energy efficiency, improving customer experience, and expanding the product portfolio. Investment intensity in research and development is moderate, with most companies allocating between 1% and 3% of their turnover to such initiatives, and only one case exceeding the 5% threshold. For the next three years, investment directions remain consistent: digitalization and digital transformation are top priorities for nearly all companies, followed by sustainability and the adoption of emerging technologies such as artificial intelligence and the Internet of Things. The analysis highlights clear investment priorities in the retail sector, focused on digitalization and sustainability. Companies are directing their efforts toward emerging technologies, automation, and digital solutions to improve operational efficiency, while also making substantial investments in ESG initiatives. Digital innovation—particularly through the development of platforms, mobile apps, and partnerships with tech startups (including AI)—is the main driver of transformation in retail. Human capital development is becoming essential to support these transformations, given the challenges related to the shortage of skilled personnel. Strategic directions are converging toward a more efficient, responsible, and competitive business model in which technology and social/environmental impact complement each other to support long-term sustainable growth. The Retail Trade in Non-Specialized Stores sector (NACE 4711), dominated by major food retail chains, is making significant progress in integrating ESG (Environmental, Social, Governance) principles, actively contributing to the sustainability and resilience of Romania’s economy. Companies in this sector have adopted coherent strategies to reduce environmental impact, support communities, and ensure responsible governance, allocating significant budgets to projects with social and ecological impact. The ESG analysis revealed key areas of action such as education, environmental protection, support for vulnerable communities, investments in green energy, and the circular economy. Investments in operational and logistical efficiency, though not explicitly emphasized in all responses, are evident through implemented digitalization and automation projects: the introduction of self-checkout systems, ERP systems, and data centralization initiatives are concrete examples that contribute to cost reduction and increased productivity. These initiatives respond to the growing need for process optimization in an increasingly competitive environment.
https://www.applied-research.ase.ro/evaluarea-impactului-economic-si-social-al-sectorului-retail-din-romania-2/ Finally, a major challenge identified by several companies is the lack of specialized human resources for the implementation and management of ESG or innovation projects. This constraint is frequently mentioned alongside high costs as one of the main barriers to investment. In this context, human capital development is emerging as a key area of indirect investment, through training programs, inclusion initiatives, and employee retention efforts. Overall, the investments reported by companies confirm a strategic shift in Romania’s retail sector—from quantitative growth to qualitative transformation. Companies are analyzing and implementing initiatives that integrate technology, sustainability, and efficiency into a business model adapted to current and future challenges. This document is based on the findings and data from the study “Socioeconomic Impact Analysis of the Retail Sector in Romania”, conducted by the Bucharest University of Economic Studies and funded by PENNY | REWE Romania SRL. The data was obtained from public sources and analyzed by the authors. The authors bear full responsibility for the content, opinions, and interpretations presented in this publication. These do not necessarily reflect the views of the funder or other entities associated with the study. The information included is intended for educational and informational purposes only and does not constitute professional or legal advice. The full study can be accessed here or at the following address:
Testimonials The sector of food and non-food retail holds systemic importance, and understanding its economic and social impact is essential both for shaping the strategies of companies competing in this space and for informing public policies that affect retail trade and the broader socio-economic environment. The purpose of this study is to provide an objective overview of the evolution of the retail sector in Romania between 2008 and 2023, as well as its influence on the economy and society. Prof.univ.dr. Ion ANGHEL, FRICS, MAA Director, Department of Economic and Financial Analysis and Evaluation Bucharest University of Economic Studies I believe that the openness of the academic environment to the study of real economic issues is essential for creating a virtuous circle—one that brings together the challenges faced by market competitors, the expertise and intellectual independence of academic researchers, and the need for high-quality information among policymakers. Such collaboration lays the groundwork for smart decisionmaking in both the public and private sectors. In 2023, the Retail Trade in Non-Specialized Stores predominantly selling food, beverages, and tobacco (NACE code 4711) generated a total impact of 6.19% of GDP, of which 1.19% was a direct contribution, 2.15% was an indirect contribution, and 2.86% was an induced Prof. Univ. Dr. Adriana Ana Maria Davidescu Department of Statistics and Econometrics, CSIE Head of Business Economics Data Science Lab contribution. At the same time, the sector supported 682,370 jobs, of which 178,890 were through direct effects, 220,620 through indirect effects, and 282,860 through induced effects. These figures highlight the central role of the 4711 sector in Romania’s economic and social dynamics, acting as a major catalyst for economic activity, employment, and domestic consumption. The retail sector (NACE code 4711) is not only an important economic player but a vital engine of the Romanian economy: every leu spent in food retail generates 2.34 lei in the economy and supports over 1,500 jobs. Assoc. Prof. Dr. Sorin Anagnoste Vice Dean, FABIZ - Bucharest University of Economic Studies
For two decades, we have been dedicated to meeting the needs of Romanians through an efficient development strategy. Our priority is for Romanians to find in PENNY stores the desired products, made in Romania, at affordable prices. Thus, the 3RO initiative was born, which we have developed annually through new research and close collaborations with Romanian producers, with the 3RO assortment now accounting for 53% of our turnover. Economic growth through the expansion of the range of Romanian products can be Daniel Gross CEO PENNY România achieved through smart initiatives that benefit both consumers and local producers, with the retail sector playing a crucial role in this equation. The recent study conducted in collaboration with the Bucharest University of Economic Studies highlights the significant impact of our sector on the Romanian economy and the reasons why our support for the development of local production brings benefits to all parties involved. We invite you to read the results of the study ‚Assessment of the Economic and Social Impact of the Retail Sector in Romania,’ as it represents a valuable resource for understanding this complex sector and fully appreciating its contribution to Romania’s economy. Each project Irina Butnaru Head of Corporate Communications and Spokesperson PENNY România carried out in collaboration with the Bucharest Academy of Economic Studies has revealed data and solutions beneficial for healthy development within the Romanian economy, at a time when good cooperation between the academic environment, the business world, and public authorities is essential. We are proud to launch this new study as an invitation for collaboration and communication, directed towards the entire retail industry in Romania. The recent study conducted in collaboration with the Bucharest University of Economic Studies highlights the major impact our sector has on the Romanian economy. This study is essential for Daniel Costache Head of Buying Food PENNY România understanding the crucial role that the retail industry plays in the country’s economic development, working directly with local producers and having the best knowledge of consumer demand per product category. Through a detailed analysis of the data, the study highlights the reasons why our involvement in supporting local production brings significant benefits to all parties involved – local producers, customers of our stores, authorities, and the population of Romania as a whole.
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