“This year is our second double-digit growth year for us. We’re seeing a 15% increase year-on-year and like-for-like growth of 10%,” says Antoniu Nituleasa, 38, the Romanian chief executive officer of Intersport Romania.
After spending 11 years in grocery retail, where he worked for Penny Market, Real and Kaufland, the executive joined Intersport as chief operating officer two years ago. Shortly afterwards, the CEO left and he served as interim CEO for a year and then was appointed to the position.
Intersport’s competitors on the about half a billion euro sporting goods market, according to ZF’s estimates, are specialist retailers like Decathlon and Hervis and mono-brand stores of Adidas and Nike, as well as hypermarket chains.
“Our sales growth is largely because of the resurgence in consumer spending, everyone on the market has seen growth.”
The steps the company took about two and a half years ago helped, as well. “What I mean here is that we had a survey conducted in partnership with market research company GfK and learnt our customers saw us as an expensive player.”
Customers then said Intersport did not have any promotional offers and prices were high, which is why the company decided to introduce first price products in its stores.
“It’s the second year since we introduced the range and it already accounts for 8% of our sales. Customers need to see we carry products on all price segments.”
Antoniu Nituleasa says Intesport also changed its communication strategy. Whereas it used to only advertise on TV, in the past two years it has printed 10 to 11 catalogs a year that go to consumers’ mailboxes.
‘”We cover the Romanian cities we have a presence in.”
The retailer has 28 stores in 16 cities. It has already opened a new store in Mega Mall in Bucharest and is in talks for two more. “We are not looking for street front space.”
Only one of the 28 stores operates in a street front space, in Unirii area in Bucharest (city center). This particular store reopened after three years.
“One can only find pharmacies, banks and sports betting shops in street front spaces. With such an offer, there is no way customers will choose street front locations as a shopping destination. Maybe the Old Town will develop over time but shopping in Romania is currently done in malls. Malls are a shopping destination in themselves.”
Intersport’s best stores are those in Baneasa and AFI malls, while the Mega Mall store has the potential to become the chain’s third leading performer. The best stores outside Bucharest are those in Cluj, Constanta, Timisoara and Brasov, Antoniu Nituleasa says.
“We will continue expansion. We are looking at Timisoara and Deva this year. The smallest city we operate in is Ramnicu Valcea, where we entered last year and are happy with the results.”
The executive says he has not closed any store since taking the reins of the company, on the contrary, he had five stores open in two years.
“We will have to close stores and that is not a bad thing. We have to monitor store performance. We will close one store in Bucharest.”
When reviewing performance, the company looks at costs, wants to a positive EBITDA.
“However, even if we lost money we did not close any store before the lease was due to expire. This is one of the reasons why everyone wants us as tenants. We are a trustworthy partner that sticks to its agreements.”
There is room for 50 stores using the Intesport format in Romania, Antoniu Nituleasa says. This does not mean the retailer is planning to reach that level in five years.
“There is room for development – given the current purchasing power, not only in big cities but also in medium-sized cities where we can open 500 to 600 square meter stores.”
(English version by Loredana Fratila-Cristescu)