Romania’s modern retail market continued to expand in 2024 and further growth is projected for 2025, according to a new report by Colliers Romania, which cited rising consumption and the entry of new international players as being behind the ongoing growth. 

Although Romania's economic growth has slowed lately, the country has seen strong long-term growth in per capita spending. Over the past 15 years spending has grown from one-sixth of Germany’s level to just 20% below that of Europe’s largest economy. This growth reflects improved purchasing power, with the country outpacing all major economies in the region – and even some Western European countries such as Spain – in per capita spending on clothing and footwear. 

Non-food retail sales surged by 14% in 2024, reaching a record high, while actual individual consumption rose to 89% of the European Union average, surpassing Poland and the Czech Republic, the report pointed out. 

“Although Romania's economy recorded only modest growth in 2024, estimated at under 1% of GDP, this does not signal a decline in consumption,” said Simina Niculita, director and partner at Colliers’ Retail Agency. “On the contrary, non-food retail sales increased by approximately 14% in volume, reaching a new all-time high.”

Despite strong consumer demand, Romania’s modern retail stock remains relatively undersized. In 2024, a total of 167,000 square metres of new retail space was delivered, down from 221,000 square metres in 2023 but still exceeding the decade-long annual average of 140,000 square metres. Developers are responding with plans to deliver over 200,000 square metres of new retail space by 2025, including key projects such as the expansion of Mall of Moldova in Iași and the reopening of Agora Mall in Arad.

Pitești led the country in new retail deliveries in 2024, reflecting a broader shift toward small and medium-sized cities. The largest developments in Pitești included Arges Mall by Prime Kapital/MAS REI, spanning 51,000 square metres, and M Pitești Park, a 24,000-square-metre project by M Core. 

“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,” Colliers noted in its report.

Looking ahead, analysts expect the market to shift focus toward larger cities. “Bucharest may once again attract major investors, either through one or two large-scale projects in the near future or through expansions of existing shopping centres,” the report said.

“Unlike previous years, consumption growth is no longer predominantly fuelled by consumer credit, signaling a more balanced economy and stronger purchasing power,” said Niculita.

New brands have continued to enter the market. Froo, the proximity supermarket owned by Poland’s Żabka Group, has opened over 50 stores in Romania within six months. The cosmetics sector saw the debut of Rituals Cosmetics and Kiko Milano, while the fashion and accessories market expanded with Budmil and Bogner. Additionally, the hospitality sector grew with the entrance of Happy Restaurants and Hesburger.

“Shopping centre occupancy remains high, and new developments, particularly retail parks in smaller towns, have been well received by the market,” said Liana Dumitru, director of retail agency at Colliers.

Despite ongoing macroeconomic and geopolitical challenges, Colliers remains optimistic about Romania’s retail outlook. “In the long term, Romania's retail sector holds significant expansion potential, driven by growing consumption,” said Niculita. “While the modern retail stock remains below that of Western European countries, strong retailer demand highlights substantial opportunities for expansion.”

For 2025, Colliers projects the addition of over 200,000 square metres of new retail space, with major developers such as NEPI Rockcastle, Iulius, and Prime Kapital/MAS REI resuming the development of large-scale shopping centres exceeding 100,000 square metres of leasable space.