The local clothing market is currently sent at EUR1.9 billion and is estimated to go up to EUR2.9 billion in 2015 and EUR4.5 billion in 2020, according to Euromonitor International data.
The eagerly awaited Swedish retailer H&M, which opened its first Romanian store at the end of March, has recently announced three new openings in November, so that its network will reach 11 units. The newest spots on the H&M map are Sun Plaza in Bucharest, Lotus Center in Oradea (NW Romania) and Maritimo Shopping Center in southeastern Constanta, writes BUSINESS Magazin.
The Swedish retailer already owns eight stores in Romania, five in Bucharest and three in other cities. It opened its first store in AFI Palace Cotroceni shopping center in Bucharest, after having analyzed the market for years. The second store was opened in Unirea Shopping Center, followed by Baneasa Shopping City, Plaza Romania and Bucuresti Mall. It later went to Brasov, Cluj and Timisoara (central, north-western and western Romania).
According to H&M officials, Romania is the first market where the company opened this many stores in its first year in business there. The courage paid off, as sales amounted to about EUR21 million from six stores in the March to August, according to a company financial report, which translates into some EUR23,000 in daily revenue per store. Under the circumstances, with the new openings and if the sales remain constant, H&M could overshoot the EUR40 million mark this year, after just nine months on this market.
The market leader, Inditex, did not remain idle this year, either, and opened over 20 stores for its seven brands (Zara, Bershka, Pull&Bear, Stradivarius, Zara Home, Oysho and Massimo Dutti).
Kenvelo, one of the longest-standing companies on this market, is now charging ahead with a new business plan: it got the Lee Cooper franchise and a partnership with German-held Tom Tailor. If everything goes well, the two brands might each reach a 30-store network each over the next three years.
Italian-held Stefanel would not let the year go by without any opening, either. After having had to close the store on Calea Victoriei, a symbol of the capitalism in the post-communist Romania, Stefanel moved only several hundred meters away to Piata Romana and the chain has ten stores again.
The major international chains are not the only ones taking the courage to enter the market, which has yet to reach EUR2 billion. Luxury brand Gerard Darel opened its second store in Romania in the Baneasa Shopping Center. The first Gerard Darel was opened on Calea Victoriei by Georgiana Palaz Hagima, who holds the franchise for this country. After having previously worked for the Saatchi & Saatchi and Tiriac group, she decided to bring the franchise of the Parisian brand in Romania.
“I believe there’s room for more Gerard Darel stores in Romania, which is why we will open one more in Bucharest, one in Timisoara and one in Constanta and Iasi.”
She did not say exactly when that should happen, but expects sales to reach EUR1 million next year. The Gerard Darel brand, though more low profile than Gucci and Louis Vuitton, has reached 400 stores worldwide, 250 of which in its home market, France. Georgiana Palaz Hagima says she is in talks with several other fashion brands.
A store selling the kids collections of the major designers such as Boss, DKNY, Timberland and Calvin Klein – L’Atelier des Enfants, has recently opened. The store on Calea Dorobanti in Bucharest required an over EUR110,000 investment, and sells 2,000 products for kids.
Romanian designer Venera Arapu, too, opened a 60-square meter store in Bucharest, after a failed attempt four years ago, caused by problems with the lease for the space, as the designer says. The new store sells Venera Arapu apparel, as well clothing items created by VITRINA, an association of Romanian fashion designers.
(English version by Loredana Fratila-Cristescu)