“We started the year with EUR200 million estimates but changed them along the way. The EUR175 million is a realistic figure we can attain,” says Lorand Szarvadi, Domo’s founder, chief executive and shareholder.
This year’s sales are expected to be slightly lower than in 2010, when they amounted to EUR178.5 million. Therefore, after having resumed growth for one year, the sales returned to decline in 2011.
Szarvadi, however, is optimistic and says his sales will exceed EUR200 million next year, as the company is due to embark upon an extensive streamlining process.
“We will close 20 small unprofitable stores by the end of next year and open large stores.”
The new policy of Domo, which is the second largest retailer on the market after Altex, is unlike the food retailers’, which prefer small spaces mostly.
After having opened stores in shopping centers in Craiova (Electroputere), Constanta (Maritimo), Bucharest (Baneasa Shopping City) and Oradea (Oradea Shopping City), Domo will go to Botosani, Pitesti and Sibiu (northern, southern and central Romania) by yearend. All the stores, both those already opened and those about to, will be over 2,000 square meters.
The businessman says he will only take Domo to retail parks and malls, as standalone stores are not profitable.
At the end last week (the week of November 14) Domo opened its second store in Baneasa Shopping City, with a floor area of 2,300 square meters, following an about EUR500,000 investment. Domo Enjoi does not sell large home appliances (refrigerators and washing machines) but has 400 square meters allocated for toys.
Szarvadi says he is looking into opening more such stores, but will not give up selling large home appliances.
(English version by Loredana Fratila-Cristescu)