Dunwell analysis: 23 distribution centers are supplying on a daily basis the stores of the largest retailers in Romania. Top 9 retailers operate more than 950,000 sqm of warehouses
Bucharest, March 26, 2020 – 23 distribution centers supply the top 9 largest retailers in Romania daily, working at full capacity, to ensure that the population has access to all the products they need, reveals an analysis made by Dunwell, the biggest independent Real Estate agency in Romania, that specializes in the Industrial sector.
Kaufland, Carrefour, LIDL, Metro, Profi, Mega Image, Auchan, REWE and Cora groups operate more than 950,000 sqm of warehouses, that are supplying over 3,000 stores nationwide.
“Despite the difficult times we are going through, with lots of uncertainties caused by the spreading of COVID-19 virus in the whole world, Romania’s largest retail chains are supplied on a daily basis, under maximum safety conditions, from the 23 distribution centers in our country. We have sufficient stocks and we foresee no problems in supplying the stores in the weeks and months to come, also taking into consideration that the international freight companies have received a <<green light>> from the EU authorities for transportation, so the risk that warehouses and, consequently, stores could confront a shortage of stock, is very low”, said, Marian Orzu, managing partner Dunwell.
Southern Romania and Bucharest, more than 600,000 sqm of warehouses
With 14 distribution centers, totaling over 615,000 sqm of space, the Southern Romania covers more than two-thirds of the total warehouses in the country, all the retail companies operating here.
In the Bucharest area, we can find the majority of warehouse investments, with more than 400,000 sqm in projects in the West (Carrefour, LIDL, Profi, Cora), North (Auchan, Carrefour, Metro, REWE, Mega Image) or South (Mega Image).
Transylvania, up to 250,000 of deposits that supply all the cities from Central and Western Romania
Five international retailers with hundreds of stores are supplied daily from the total of 250,000 sqm of warehouses located in Transylvania: Kaufland, Carrefour, LIDL, Profi and REWE Group, there are.
Cluj and its surroundings are still the main attraction for investments in FMCG deposits, more than 180,000 sqm of industrial spaces being operated in this area.
The Moldavian area, supplied from two cities with more than 85,000 sqm of warehouses
LIDL, Profi and REWE retail chains are being supplied from their deposits in Roman and Bacău daily, totaling more than 85,000 sqm of storage spaces.
The largest deposits are in Roman, where LIDL and Profi operate over 70,000 sqm of warehousing.
Demand for online deliveries has hit a record high
Demand for online deliveries has hit a record high in this period, so the retailers had to allocate more space in their warehouses for the virtual orders.
“As a result of the measures taken by the authorities to limit the people’s exposure and leaving their houses, the large retail chains have recorded a 30 – 50% growth of their online orders, delivered by their own transportation services or through courier services. Increases in demand during this period have also been registered by courier services or companies specialized in food or non-food products deliveries, where values are reported to be even 10 times higher compared to the period before the isolation measures being taken”, added Marian Orzu.
About half of the largest retail chains in Romania operate an online platform with delivery or take-away point options, Dunwell data reveal.
Transportation companies and delivery services have „green light” for EU transit
The Ministry of Transportation, Infrastructure and Communications, alongside with the Ministry of Internal Affairs have reached to an agreement, after discussions with the EU authorities, to set special corridors and routes for freight transport for the food industry goods in the EU and non-EU countries so that the delivery times will not be affected in Romania.
With these routes, transport companies are being assured that there will be no delays in their delivery times. Thus, freight transport, such as foods, medical equipment or medical care will benefit from continuity, protection, and safety, in order to limit and prevent the spread of the COVID-19 virus.
This measure was taken also by the other EU states so that the freight transport or special deliveries (including courier services) have priority on the European highways and roads. More details about the measures taken by other EU countries can be found here.
Dunwell (www.dunwell.eu), the first and only exclusive industrial real estate agency in Romania is a start-up founded in 2017, in Bucharest. The agency’s main objective is to intermediate the transactions between industrial owners, logistic park developers (new developments, extisting, under construction, built-to-suit, brownfield or greenfield projects etc.) and tenants (logistics, traditional and online retailers, FMCG, production). The land division focuses on land transactions, industrial or other developments, from small to big areas. Dunwell’s executive team means Marian Orzu, one of the most experienced industrial specialists in Romania, with more than 15 years of background in this field, Daniel Cautis, with more than 8 years in the industry and Laurentiu Badea, with almost 17 years of experience in the Romanian Real Estate market.
Patrick Vrabie | Marketing & Communications Consultant @ Dunwell
t: +40 734 116 484