Refurbishing works, set to involve investments of 4-4.5 million euros, will be completed in the summer of 2016.
“Refitting was necessary for the store to be adjusted to modern retail requirements and the tight competition expected in the area. Moreover, the crisis hurt us and our clients and I believe the new concept will help us boost traffic and receipts,” says Gelu Manea, managing board president and general manager of the store since 2001.
He is as a matter of fact one of the company’s shareholders, with a 16.05% stake, together with Postovaru Laurentiu (49.89%), former store employees, now clients (10%) and other small shareholders.
Currently, there are several conflicts involving Bucur Obor company (listed on the Bucharest bourse), both between the majority stakeholder and small shareholders, and between the store’s managing board and Laurentiu Postovaru.
The majority stakeholder confirmed there is a plan to refurbish the store, with the store’s management having already signed a contract with Austrian real estate consultancy Krammer & Wagner. He specified he was not consulted about the contract.
Manea says that in 2008 the store was daily visited by as many as 120,000 people, of whom 80,000 became buyers. Today, the number of visitors dropped to 45,000, with the number of buyers sliding to 32,000-35,000.
“The average cash receipt also fell from RON200 in the good times to RON75 today. However, we hope remodeling will boost traffic by 25-30% and our income by at least 15%”.
The revamping of the store is a project under discussion since 2003 and certain works were carried out in time. Bucur Obor was built in the ‘70s, and at the opening moment it was Romania’s largest universal store.
The store now has a rentable area of around 16,000 square meters, equaling that of a small shopping center. In the wake of refitting works, the area will expand to 22,000 square meters.
For years, Bucur Obor store has been the only shopping center in the area. However, two malls are set to be raised in Obor area in the following years. “We’ll still be a store addressing small and medium-income persons. This is our niche”.
“We do not want to turn into a mall or shopping center, we want to be Bucur Obor store and this is why we’ll keep our name”.
At present, the store has 300 tenants.
“After remodeling, there will be 150-160 tenants left and we’ll keep the best-performing ones. Fabric and small-ware shops will be our plus in our competition with malls”.
Following the new model, tenants will be grouped along industries and the fashion anchor will fill 2,200-2,500 square meters. “We want to attract other fast food chains, fashion and footwear retailers, as well as a sport and fitness center”.
During refurbishing works, the store will not be closed, with works to be carried out in stages.
Bucur Obor company, which manages the store of the same name, ended 2013 with revenue of RON14.6 million, up 7% on the year.
(English version by Catalina Apostoiu)