Colliers: Romania’s modern retail sector on the positive trend
Romania's modern retail market continues to expand, defying economic slowdown trends, fueled by rising consumption and the entry of new international players. According to Colliers' annual report, non-food sales grew by 14% in 2024, reaching a record high, while actual individual consumption surpassed that of Poland and the Czech Republic, hitting 89% of the European Union average. Despite strong demand, modern retail stock remains undersized. However, developers plan to deliver over 200,000 square meters of new retail space by 2025. Key projects include the expansion of Mall of Moldova in Iași and the reopening of Agora Mall in Arad. Against this backdrop, Romania is becoming increasingly attractive for retail investment, strengthening its position in the regional market despite macroeconomic challenges and ongoing uncertainty.
A total of 167,000 square meters of new modern retail space was delivered in 2024, down from 221,000 square meters in the previous year, according to Colliers' annual report. Despite this decline, the market remained resilient, exceeding the decade-long annual average of 140,000 square meters. By comparison, during the pandemic years, economic uncertainty caused retail space deliveries to drop below 100,000 square meters in both 2021 and 2022. Pitești recorded the highest retail deliveries in 2024, reinforcing the trend of developers shifting their focus to small and medium-sized cities. The most significant projects completed in Pitești include Arges Mall, developed by Prime Kapital/MAS REI, with 51,000 square meters, and M Pitești Park, developed by M Core, with 24,000 square meters. As a result, nearly half of the new modern retail stock was concentrated in a single city of just 140,000 inhabitants, highlighting the growing interest in regional markets.
However, in the coming years, the market is expected to shift direction, Colliers consultants note, explaining that as developers focus on larger cities, where major retail projects are in the pipeline, the sector's dynamics will evolve. Additionally, Bucharest may once again attract major investors, either through one or two large-scale projects in the near future or by expanding existing shopping centers.
“Although Romania's economy recorded only modest growth in 2024, estimated at under 1% of GDP, this does not signal a decline in consumption. On the contrary, non-food retail sales increased by approximately 14% in volume, reaching a new all-time high. Official data for 2024 is not yet available, but Eurostat reports that in 2023, actual individual consumption—an indicator measuring the real amount of goods and services used by the population rather than total spending—rose to 89% of the EU average. This marks the highest level in Central and Eastern Europe, surpassing both Poland and the Czech Republic. Moreover, nominal spending indicators reinforce this upward trend. An analysis by Oxford Economics, based on data from Eurostat, national statistical institutes, and recent estimates, offers a clear perspective on Romania's consumption trends over the past decade and a half. One particularly relevant segment is clothing and footwear, a key component of the tenant mix in shopping centers. This category remains a major driver of modern retail expansion, reflecting both shifting consumer preferences and the local market’s attractiveness to investors”, explains Simina Niculita, Director | Partener | Retail Agency at Colliers.
Over the past 15 years, per capita spending in Romania has grown significantly, rising from one-sixth of Germany’s level to just 20% below that of Europe’s largest economy. This trend reflects a steady improvement in purchasing power, according to Colliers consultants. Romania has outpaced all major economies in the region - and even some Western European countries, such as Spain - in terms of per capita spending on clothing and footwear. This growth confirms a rise in consumption, fueled by higher incomes and an increasingly competitive retail market. Although this expansion has negatively impacted the balance of payments, as Romania relies heavily on imports for consumer goods, it is now more sustainable than in the past decade. Unlike previous years, consumption growth is no longer predominantly fueled by consumer credit, signaling a more balanced economy and stronger purchasing power.
“Over the past decade, salaries in Romania have grown consistently, outpacing inflation - except for a brief period during the pandemic. Historical data shows that the purchasing power of the average salary began rising in 2014 and has since doubled in real terms, when adjusted for inflation. Another key factor is the relatively low market saturation in terms of international brand presence. This translates into high profitability and efficiency for the retail sector, where performance indicators are significantly stronger than in other countries. As a result, Romania remains an attractive market for both the expansion of established brands and new retail investments”, adds Liana Dumitru, Director Retail Agency at Colliers.
The sector's strong performance is reflected in gross operating yields, positioning Romania among Europe's top markets in categories such as clothing, footwear, pharmaceuticals, cosmetics, and toys. The trend of new brands entering the Romanian market continued in 2024, with increasing visibility for regional players from Poland, the Czech Republic, and Turkey. Meanwhile, international brands are actively exploring expansion opportunities in Romania, further reinforcing the market’s upward momentum.
One of the most notable market entries was Froo, the proximity supermarket owned by Żabka Group, Poland’s largest chain of its kind. Expanding rapidly, the brand opened over 50 stores in just six months, marking a strong push into the local market. In the cosmetics sector, Rituals Cosmetics and Kiko Milano made their debut, while the fashion and accessories segment expanded with Budmil and Bogner. Meanwhile, the hospitality and restaurant industry welcomed Happy Restaurants and Hesburger, further diversifying options for Romanian consumers.
Colliers consultants anticipate that this sales growth will positively impact sales-based rents in 2024, as overall volumes remain above pre-pandemic levels. Shopping center occupancy remains high, and new developments, including retail parks in smaller towns, have been well received by the market. Dominant shopping centers continue to experience strong tenant demand, with waiting lists and minimal available space. This dynamic presents an opportunity for landlords to refine the tenant mix, ensure a healthy turnover rate, and align supply with market demand.
“In the long term, Romania's retail sector holds significant expansion potential, driven by growing consumption. However, economic and geopolitical risks could influence the pace of development. Although Romania faced a severe recession in 2009-2010, the market recovered quickly, and retail sales have consistently outperformed the European average since 2014. While the modern retail stock remains below that of Western European countries, strong retailer demand highlights substantial opportunities for expansion, further enhancing the market's appeal for both retailers and investors”, concludes Simina Niculita, Director | Partener | Retail Agency at Colliers.
For 2025, Colliers estimates the delivery of over 200,000 square meters of new retail space, including the expansion of Mall of Moldova in Iași (62,000 square meters) and the reopening of Agora Mall in Arad (35,000 square meters). Additionally, NEPI Rockcastle, Iulius, and Prime Kapital/MAS REI are resuming the development of large, dominant shopping centers exceeding 100,000 square meters of leasable space, following a period of focus on retail parks.
