Page 92 - SE Outlook Regions 2022

3.6 Real economy - Moldova

3.6.1 Retail

Foreign and local retailers are capitalising on the robust growth of
private consumption.

Retail sales in Moldova, over the 12 months to October 2021, increased
by 14.0% y/y and by 16.1% compared to 2019, the last full year before
the crisis. It is an outstanding advance pinpointed by the expansion of
the modern retail chains and the consolidation of local players.

The main foreign player, Kaufland, continued its expansion on the
Moldovan market while the largest local retailer took over its rival,
gaining more power.

In only two years, the German retailer opened six hypermarkets in
Moldova, taking a head start in expanding its network well ahead of
other foreign retailers. It has three stores in Chisinau and one each in
Balti in the northern part of the country, Ungheni on the border with
Romania and Comrat in the Gagauz administrative unit. Moldretail
Group, the largest player in food retail in Moldova, controlled by local
businessman Vasile Dragan and operating the Linella chain of stores,
took control of rival group Fidesco in the largest transaction on this
market recently.

Moldretail Group is the biggest retailer and the biggest company by
turnover in Moldova, with revenues of MDL4.66bn (233mn) and a profit
of MDL179mn in 2020. The group is best known for its Linella chain of
stores, which has reached 120 units, including 55 in Chisinau, being the
largest in food retail.

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