“We’re still working on our private label. We want to develop a brand at better prices than what is currently available on the market. Our products will be cheaper, but high quality. Private label products will be available in our stores in June,” said Flanco Retail CEO Dragos Sirbu, without revealing the brand name, which is currently being trademarked.
He said the products will be manufactured in collaboration with producers in China and Turkey and are estimated to reach 10-15% of the company’s turnover within three years.
Flanco Retail had a turnover growth of 8% last year, to RON665 million (EUR150 million) and a 61% growth in net profit, to RON2.2 million, driven by household appliances, the technology segment and large screen TVs.
“This year we target 12% growth, at the rate of the market, but profitably. We’re looking for moderate but healthy growth,” said Sirbu.
According to Flanco, 2014 confirmed predictions of a return of confidence in consumer lending and 20% of the retailer’s total sales were in installments.
Flanco’s online sales grew 150% on the year and accounted for 12% of the total. The company estimates online sales will account for 16-17% this year.
Flanco invested RON8 million last year in nine new stores, remodeling 42 stores, two store relocations and one expansion. The company also closed two stores in the same period.
“Expansion will continue this year. We have four planned openings: Coresi Brasov (March 27), Mega Mall Bucharest (April 23), Tulcea and Slatina in September. We have an investment budget of RON10 million, of which RON3 million for technology, RON1 million for employee training and RON6 million for store openings,” said Sirbu.
Flanco will hire 80 people this year, after reaching 1,100 employees last year. The company currently has 88 stores in 55 cities bad towns.
Flanco is 100% owned by businessman Iulian Stanciu.