Domo Retail’s founder, shareholder and chief executive Lorand Szarvadi this spring said he wanted the network to reach 100 stores by the summer of 2013, but achieved the target by more than six months earlier. Szarvadi said several months ago he thought the necessary number of stores to serve the entire country was 100, which would be reached by opening a few stores and closing others until mid 2013.
The officials of the retailer had not answered how many stores had been closed this year nor how many had opened by the time the story was ready for posting.
The businessman’s plan was to drop those stores that were either too small or unprofitable. The company closed several stores in Bucharest, one of which was located in City Mall, the only mall in Bucharest that went through bankruptcy.
Szarvadi, who has been running the country’s second largest electronics and home appliances retailer by revenue since 1994, said he would only close the loss-making stores he could not turn around, while at the same time open others.
Domo, as its chief executive said, is now looking for spaces that allow it to be close to its competition.
Domo ended last year with EUR165 million in revenue, about 8% less than in 2010 and almost 20% below the budget. It did not provide any estimates for this year. Its main rivals, Altex and Flanco had a better 2011 than 2010.
The durable goods market, one of the worst hit by the crisis, showed signs of a rebound in 2011, when it grew by about 13% on 2010 to EUR1.4 billion, according to GfK Temax report by GfK Romania. It shrank again this year by over 7% in the first half to EUR592 million.
(English version by Loredana Fratila-Cristescu)