Shops in Romanian prisons make good profit, but also pay high rents

Some companies are paying extremely high rents to keep their stores in the Romanian penitentiaries. In most of the cases, the shops’ rent is exceeding the most expensive ones in Bucharest center. For instance, in Rahova penitentiary, the rent for a store exceeds EUR 19,000 per month, while at Jilava, the price reaches almost EUR 6,000. In exchange, the owners of these shops make good profit, as they have thousands of customers every day. Inmates have the right to buy products every week mounting to half of the minimum gross salary. The products range from food, mineral water, soft drinks to cigarettes and other goods.

So, Rahova Penitentiary in Bucharest is by far topping the rent ranking on jail shops. The company that won the auction for the business premises in this prison, SC Nelu&Rodica Ltd, is paying EUR 442 per square meter on a monthly basis. So, for the 44sqm of the shop, the company is paying EUR 19,448. The company is also paying EUR 1,500 for a 34-sqm location which it uses as warehouse. The company won the action for the shop at Rahova Penitentiary in April 2014, while the contract will expire in April 2016. The above-mentioned shop is also serving the Rahova Penitentiary’s Hospital. It has over 1,400 customers, and 73 persons admitted in the penitentiary’s hospital.

Another penitentiary in the Capital, Jilava is commissioning smaller rents. Zodia Prod Ltd, the company that won the auction to operate the prison’s shop in October 2014, is paying EUR 126 per month for 46,44 square meters, thus paying EUR 5,851 per month. 1,364 inmates were imprisoned at Jilava on December 3.

The shop in Iasi Penitentiary is paying EUR 2,115 per month for 84.8 square meters, while in the prison in Timisoara, the shop owners are paying EUR 6,800 per month.

In Gherla, there are two indoor shops and an outdoor one. For the indoors business premises, EUR 2,740 are paid each month, while another EUR 167 is paid for the outdoor shop.

EUR 3,830 are paid every month for the shop operating at Târgșor, the only one penitentiary for women in Romania, where 669 female prisoners are currently incarcerated.

There are three shops at Poarta Alba Penitentiary in Constanta, and another one at Valu lui Traian arrest center. Two of the shops and the other one in the arrest center are operated by Andra International, owned by mayor of Valu lui Traian commune. He pays a total monthly rent for all them mounting to almost 1,400 euros, Mediafax reports.