Retail sale in non-specialized stores sector – positive evolution of revenues

  • In Bucharest-Ilfov region, retirees spent the most on food and drinks in 2018;
  • The level of indebtedness in the sector of 61% is decreasing compared to the previous years;
  • The coverage degree of short-term debt through net cash increased from 9% in 2014, to 22% in 2018;
  • The average duration of receivables (DSO) is lower compared to the nationally reported threshold;
  • More than half of the companies (55%) registered a net loss at the end of 2018, and 21% of them had a loss of more than -20%;
  • Around 44% of the companies analyzed have a sub-unit liquidity (current assets do not cover current debts);
  • The consolidated net result at sectorial level decreased from 2.8% in 2017, to 2.4% in 2018.

A new study conducted by Coface Romania on the sector of „Retail sale in non-specialised stores with food, beverages or tobacco predominating” (NACE 4711) indicates a positive evolution of revenues in 2018, which increased with approximately 8% compared to 2017, with a slightly lower profitability.

The study aggregated the data of 42.051 companies that submitted their financial situation for 2018 (as of September 2019) and generated a consolidated turnover of RON 71.96 billion. The weight of the cumulative market share held by the most important 10 players is 61%, which indicates a medium to high degree of concentration.

The share in the total turnover of the top 10% companies in the sector remained at a high level (89.1% in 2014, in 2018 reaching the value of 89.4%). Thus, the sector is highly polarized, with some large companies generating a high share in the turnover and many small companies contributing less to the total revenues.

The companies operating in this sector registered a current liquidity of 0.94 during 2018, the working capital being exposed to negative shocks, in a context of volatility (lower revenues or non-collection of receivables). The average duration of debt collection in the analyzed sector decreased from 29 days, the level registered in 2014, to 17 days in 2018, while the national level for the same period decreased from 104 days to 90 days.

The largest number of companies operating in this sector are located in Bucharest ~ 9% of the total, generating the highest turnover ~ RON 35 billion (49% of the total). After Bucharest, Timiș and Ilfov contribute with 9%, respectively 8% in the total turnover and 3% in the number of companies.

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