Large retailers, outside cities

Romanian product distribution companies complain about the opening of hypermarkets within cites.

Daniela Budu, 05.04.2019, 13:50

In Romania, talks about relocating large stores outside city centres have been rehashed. So far, the opening of hypermarkets in major cities has resulted in the closing of many Romanian stores, and even people in rural communities are now doing their shopping in superstores. Moreover, the policy of large retailers is to protect imported goods, say the Romanian Product Distribution Companies, which propose changes in the legislation to the effect of stopping the construction of hypermarkets within cities and consequently of giving a chance to Romanian businesses as well.

Here is the president of the National Federation of Trade Unions in the Food Industry, Dragos Frumosu: “From now on, retailers should operate outside cities, so as to allow small producers or medium and small companies to operate within cities. Obviously, this means an increase in the number of jobs, in the amounts collected to the state budget, as well as an adjustment of prices in the market. Because today the prices charged by retailers are rather high, they include a lot of taxes and charges, so the end price of products may be up to 30% higher.”

Dragos Frumosu agrees that a change in the legislation, so as to ban the construction of hypermarkets within cities, will be a lengthy process, and one impossible to see through without the understanding of the situation by the political class: “I find it hard to believe that this will happen very soon. The start of a dialogue may lead to a construction process, provided that the political class are willing to do this and provided that there is no pressure, as we all know there is, from the representatives of the countries of origin of these hypermarkets. I believe that through constructive dialogue, all stakeholders will understand the situation and we will be able to create something to benefit everybody.”

As far back as in 2015, two MPs from the National Liberal Party, in opposition, tabled a draft law under which hypermarkets should be closed on Sundays and they should be located outside cities. They believe that, with superstores outside cities, Romanian producers will be able to sell their fruit and vegetables more easily, and locals will be free of the heavy traffic around hypermarkets.

The Association of Large Retail Chains however are against the idea. They say they have secured all the required permits, and they already sell Romanian products, based on partnerships with local farmers. They also claim this legislative initiative will lead to massive layoffs and huge losses in state budget revenues.