Shelf Prices In Romania 15% More Expensive On Distribution Costs

In Romania, distribution costs account for 16-20% of shelf-prices, compared to just 4-6% in other European states, Kuij said in a seminar. The difference, he added, comes from the fact that distribution networks in Romania are inefficient, unorganized and therefore, more expensive.

He also said that this is the reason why products in Romanian stores are 10-15% more expensive than in countries such as France, Germany or the Netherlands.

Another factor driving distribution costs up is that most producers use distributors instead of delivering products directly. A first step to lower distribution costs would be to lower the number of intermediaries between producers and vendors, Kuijs said.

In his opinion, distribution and logistics costs could be reduced for a period of ten to 15 years.