COMPETITIVE ANALYSIS DEMO REPORT LARGE RETAILERS IN ROMANIA AUCHAN CORA CARREFOUR. 1.1 Auchan. 1. General data

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1 COMPETITIVE ANALYSIS DEMO REPORT LARGE RETAILERS IN ROMANIA AUCHAN CORA CARREFOUR 1.1 Auchan 1. General data Company name: Auchan Romania SA Address (headquarters): Str. Barbu Delavrancea 13, Bucharest Phone: Fax: Web: Year of establishment: 2005 Ownership: Auchan Group 2. Financial data Year/Category Net turnover (mil. EUR) Average no of employees , , , Net profit (mil. EUR)

2 3. Key persons Name Position Contact details Mr. Patrick Espasa General Director Mr. Tiberiu Danetiu Marketing Director Ms. Mariana Dragan Communication Manager Tel: Brief profile Auchan Romania is part of the French Group Auchan. Auchan opened its first hypermarket on the Romanian market in This store is located in Bucharest (in the Titan area) and has the surface of over 16,000 sqm. The store records a daily traffic of 30,000 45,000 persons and registers the biggest sales in the Auchan network in Romania. At present, Auchan has nine hypermarkets in Romania, located in Bucharest (two stores in the Titan and Militari areas), Pitesti, Targu Mures, Cluj Napoca, Suceava, Timisoara, Constanta and Craiova. The Auchan hypermarket in Cluj Napoca was opened in November 2007, with an investment of 40 million EUR. The store is located in the Iulius Mall, has the surface of some 10,000 sqm and offers over 45,000 products. The Auchan hypermarket in Bucharest, located in the Militari area, was launched in December 2008, following an investment of 20 million EUR. The store has the surface of 12,500 sqm. The Auchan store in Constanta was launched in October 2011, in the Maritimo Commercial Center. The store has a selling surface of 12,000 sqm and sells over 50,000 products. Auchan intends to expand its network of units in Romania and to reach 14 hypermarkets by Auchan targets Braila, Galati, Brasov or Bucharest for the expansion process.

3 Examples of prices in Auchan hypermarkets (RON): Product & brand September 2011 October 2011 November 2011 Dobrogea superior wheat flour, category 000, 1 kg Zuzu milk, 1.5% fat, cardboard box, 1 l Bunica oil, Pet, 1 l Coca Cola, Pet, 2 l Timisoreana beer, dose, ml Danone Nutriday Natural Yogurt, 4.1% fat, 140 g Protex Fresh soap, 100 g Dero Ozon+ automatic laundry detergent, 400 g Lenor Spring concentrated fabric softener, 1 l Mr. Proper universal cleaning detergent, 1 l

4 1.2 Cora 1. General data Company name: Romania Hypermarche SA Address (headquarters): Str. Lipscani 102, Bucharest Phone: Fax: Web: Year of establishment: 2002 Ownership: Louis Delhaize Group 2. Financial data Year/Category Net turnover (mil. EUR) Average no of employees , , , Net profit (mil. EUR) 3. Key persons Name Position Contact details Mr. Philippe Lejeune General Director Ms. Aura Radulescu Procurement Director Food Ms. Ana Maria Florea PR Responsible Phone: Brief profile Romania Hypermarche, the operator of the Cora network in Romania, is part of the Louis Delhaize Group. The first Cora hypermarket on the domestic market was launched in October 2003 in Bucharest (Pantelimon area). This is the biggest hypermarket in Romania. The store has 840 employees and a selling surface of 16,400 sqm. The Cora Pantelimon hypermarket sells annually 500,000 packages of toilet paper, 3.2 million bottles of water, 2.2 million beer doses and bottles, 2.1 million packets of biscuits, 1.3 million bags of sugar, 1.4 million oil bottles, 2.8 million yogurts, 1.5 million litres of milk, 400,000 kg of tomatoes, 500,000 kg of potatoes, 900,000 kg of citrus, 1.2 million kg of poultry, 850,000 kg of pork meat etc.

5 At present, the Cora network in Romania includes eight hypermarkets, located in Bucharest (three units in Pantelimon area, Lujerului area and Sun Plaza Berceni), Cluj Napoca, Baia Mare, Constanta, Drobeta Turnu Severin and Arad. The biggest sales are recorded by the following stores: Cora Lujerului, Cora Pantelimon, Cora Sun Plaza all in Bucharest - and Cora Cluj Napoca. The Cora store in Drobeta Turnu Severin was opened in March The total investment in this unit amounts to some 22 million EUR. The Cora store in Baia Mare was opened in November 2010, following investments of some four million EUR. The store is located within the Gold Plaza Mall and has a selling surface of 4,500 sqm. This was the first Cora store opened in smaller cities, with population lower than 100,000 inhabitants. The Cora hypermarket located in the Sun Plaza in Bucharest was launched in February The store has a selling surface of 13,000 sqm and sells over 80,000 products. For this store, the retailer hired some 700 persons. In 2012 Cora will open three units, located in Bucharest (in Park Lake Plaza Titan), Slobozia and Bacau. Also, the retailer owns lands in Brasov, Constanta and Galati. In Brasov, the retailer intends to open a Cora store and a commercial gallery with the surface of 5,000 sqm. In Constanta, the retailer will open the Corall commercial center. In 2011, Cora received from the EBRD a credit of 210 million EUR in order to finance the expansion process on the domestic market. Cora estimates a turnover of million EUR for 2011 in Romania. The private brands have a contribution of 12-14% in the Cora network s turnover in Romania and their percentage will continue to grow. The retailer s private brands are: - Cora (foods, detergents, cosmetics, sport, DIY etc) - Winny (foods) - Traditia Gustului (foods) - Nature Bio (organic products) - Prieten Vechi (wine) - L'ame du terroir (wine) - Prima (alcoholic drinks) - Gourmand (French traditional products)

6 Examples of prices in Cora hypermarkets (RON): Product & brand September 2011 October 2011 November 2011 Margaritar sugar, paper bag, 1 kg Zuzu milk, 1.5% fat, cardboard box, 1 l Borsec carbonated mineral water, Pet, 1.5 l Timisoreana beer, dose, ml Jacobs Kronung Premium Alintaroma coffee, 250 g Milka Lapte din Alpi chocolate tablets, 100 g Danone Nutriday Natural Yogurt, 4.1% fat, 140 g Colgate Advanced Whitening, toothpaste 150 g / 100 ml Protex Fresh soap, 100 g STR8 Original aerosol deodorant, 150 ml

7 1.3 Carrefour A FRD Center Market Entry Services Demo Publication 1. General data Company name: Carrefour Romania SA Address (headquarters): Bd. Timisoara 26Z, Bucharest Phone: Fax: Web: office_romania@carrefour.com Year of establishment: 1999 Ownership: Carrefour Group 2. Financial data Year/Category Net turnover (mil. EUR) Average no of employees , , , , , Net profit (mil. EUR) 3. Key persons Name Position Contact details Mr. Francois Melchior De Polignac General Manager office_romania@carrefour.com Mr. Vlad Ardeleanu Commercial Director vardeleanu@carrefour.ro Ms. Andreea Mihai Marketing Director amihai@carrefour.ro Phone: Ms. Alina Horgea - Fresh Products Acquisition Manager ahorgea@carrefour.ro 4. Brief profile Carrefour Romania is part of the French Group Carrefour. Carrefour is present both on hypermarket and supermarket segments in Romania. The first Carrefour hypermarket on the domestic market was launched in 2001, in the Militari area in Bucharest, this representing the first hypermarket on the domestic market. The impact of the new retail format brought by Carrefour in Romania was seen immediately

8 in the sales - in the first six months from its launching in 2001, the sales of the Carrefour Militari store exceeded 45 million EUR, a record amount for that period in Romania. The store s turnover in 2002 recorded over 80 million EUR and the French Group decided to expand on the domestic market. The second store launched by Carrefour in Romania - Carrefour Orhideea in Bucharest - represented another premiere for the local market: a hypermarket located near the city centre. This launching was followed by an expansion process that included one - two new hypermarkets per year. In 2008, Carrefour opened ten stores, with investments estimated at over 300 million EUR, reaching 21 hypermarkets in Romania. Starting with 2009, Carrefour focused more on the supermarkets, the retailer entering this market segment through the acquisition of the Artima network. At present, Carrefour has 25 hypermarkets in Romania, out of which two were launched in The Carrefour hypermarket in Botosani was launched in November 2011 in the Botosani Shopping Center. The store has a surface of 7,000 sqm. In October 2011, Carrefour opened a hypermarket with the surface of 8,400 sqm, in the Colosseum Center in Bucharest. The store has 350 employees. Apart from its hypermarkets, Carrefour has recently opened a series of proximity supermarkets named Carrefour Market. This retail format sells a range of some 6,300 products and the offer includes over 1,000 products from the Carrefour own brand. Carrefour recorded sales of billion EUR in Romania in Examples of prices in Carrefour hypermarkets (RON): Product & brand September 2011 October 2011 November 2011 Dobrogea superior wheat flour, category 000, 1 kg Zuzu milk, 1.5% fat, cardboard box, 1 l Bunica oil, Pet, 1 l Coca Cola, Pet, 2 l Borsec carbonated

9 mineral water, Pet, 1.5 l Timisoreana beer, dose, ml Danone Nutriday Natural Yogurt, 4.1% fat, 140 g Protex Fresh soap, 100 g Lenor Spring concentrated fabric softener, 1 l Mr. Proper universal cleaning detergent, 1 l

10 1.4 Competitive analysis A FRD Center Market Entry Services Demo Publication Net turnover dynamics 1,200 1, million EUR Auchan Romania Romania Hypermarche Carrefour Romania Source: Ministry of Public Finances Net profit / loss dynamics million EUR Auchan Romania Romania Hypermarche Carrefour Romania Source: Ministry of Public Finances

11 Average no of employees - dynamics 10,000 8,000 6,000 4,000 2, Auchan Romania Romania Hypermarche Carrefour Romania Source: Ministry of Public Finances No of hypermarkets - dynamics Auchan Cora Carrefour Source: business publications

12 Price comparison in November food products RON Cora Lujerului Carrefour Orhideea Auchan Militari Dobrogea superior wheat flour, category 000, 1 kg Zuzu milk, 1.5% fat, cardboard box, 1 l Source: FRD Center Price comparison in November non food products Cora Lujerului Carrefour Orhideea Auchan Militari Colgate Advanced Whitening, 150 g / 100 ml Head&Shoulders Natural Menthol Shampoo, 200 ml Lenor Spring concentrated fabric softener, 1 l Source: FRD Center

13 This demo Competitor Analysis is produced by FRD Center Market Entry Services - a privately owned market entry consulting firm based in Romania. FRD Center offers tailor-made market intelligence, B2B matchmaking and market access consulting services to foreign organisations interested to enter the emerging markets in Europe as exporters, consultants, investors or joint-ventures, to relocate their operations, or to source in CE, SE and Eastern Europe. Our services include: - market research, investment opportunities assessment, sector studies, market briefs - competitor analysis - identification and qualification of B2B distributors, importers, suppliers etc. - product presentation and assessment of interest from clients / partners - pre-m&a business support and research - identification of market opportunities: exports, sourcing, B2B sales etc. - trade missions, business itineraries, inward buyer missions FRD Center is the Global Intelligence Alliance Research Partner for Romania, a member of the Global Consulting Network-GCN, of the Expansion Alliance Group, of International Subsidiary Development Inc. and of EMERGY International network. Disclaimer: Whilst every care is taken in compiling this report, no responsibility is taken for errors or omissions. FRD Center guarantees that this information, collected and generated, has been operated in a professional manner and best efforts were applied with a view to offering accurate and complete results. However, FRD Center will not be held liable for any damage or loss resulting from the use of the information contained herein. For tailor-made market research and market entry support to the markets in CE, SE and Eastern Europe, please do not hesitate to contact our team directly. FRD Center Market Entry Services Bucharest ROMANIA Contact: Jackie Bojor, Director europa@frdcenter.ro