There are about 70,000 to 75,000 grocery stores in operation in Romania, from small ones to supermarkets and hypermarkets, whose sales reach EUR16 billion a year, in addition to about 7,000 pharmacies with EUR3 billion annual sales.
“Our products are available in all the international retailers’ chains, in brand stores (Farmec’s i.e.) and in more than 4,500 pharmacies in Romania. We also have an online shop and 17,000 traditional retail customers,” says Mircea Turdean, general manager of Farmec Cluj Napoca. Traditional retail generates 45% of the revenue, while modern retail stores and pharmacies account for the rest, he added.
Farmec has opened its own stores, as well, in the last few years, which can be found in the big cities in Romania. It has opened six such stores so far in Cluj-Napoca, Arad, Timisoara and Targu Mures.
“In 2015 we renovated and reopened two stores in Cluj-Napoca. Their reopening is part of the strategy to invest in brand stores in the main cities in the country. We want to remodel all our brand stores in Romania by the end of 2016, in a EUR200,000 investment, and open five more.”
The company also has stores abroad, which it opened in partnership with local investors, such as the Gerovital store in Menton, on the French Riviera, 40-kilometers away from Nice and two more in Barcelona, Spain and Acqui Terme, Italy, which it inaugurated last year. It had previously opened stores in Greece.
Besides stores abroad, Farmec exports its products to 30 countries. Exports account for about 5% of its revenue, according to the latest data available to ZF.
It has yet to announce 2015 results, but posted growth of 10% in the first half. If the growth continued unchanged, the revenue should be close to 170 million lei (EUR38 million).
“The year 2015 was very good, financially, for us. Our target is this year is to boost revenue by strengthening the market position of our main product ranges, launching new products and expanding the Farmec chain. We will open both traditional retail stores and stores in shopping centers,” Turdean said.
Online commerce is also an important avenue for development as the online store has grown to 1 million customers since its inauguration in 2012. The company sees this store as a way for customers abroad who do not have access to a mortar and brick Farmec store to buy its products. (EUR1=RON4.4691)
(English version by Loredana Fratila-Cristescu)