Retailers May Benefit From Intl Crisis, Layoffs – Rewe Romania

Radu said Wednesday the people laid off from some economic sectors could be absorbed in other industries, such as retail.

 

"Some of the people laid off from the industry could be absorbed by the retailers. Altogether, pressure with wage claims upon the employers will diminish," Radu said.

 

Wages in the retail sector increased by an average of 20% in the last years, and the company sees an average hike of 10%-12% in 2009.

 

Moreover, retailers could expand more rapidly following price stagnation of lands and in the construction industry.

 

He also expects the relationship between retailers and their providers to improve as both parties will be interested in carrying on the economic activities in a difficult period.

 

Rewe Romania, operator of discount stores Penny Market, has 72 stores, and two logistic centers, following EUR130 million investments.

 

In 2007, the company reported a turnover of EUR253.7 million, up 40% from a year before.