“We’re trying to open in Baneasa, very close to the mall,” said Lars Lund, country manager of kika Romania. He was in talks to buy the land, being interested in plots located on the other side of National Road 1 (DN1).
Asked why he chose an area that already hosts two furniture retailers, Lund answered he wanted to “capitalize” on the location that is shaping up as a furniture shopping hub.
“Overall investments, the building and the plot of land, amount to EUR32-35 million,” Lund also said. If the land purchase is completed this year, the store in Baneasa will be opened in 2012.
Bucharest might have a third kika store, located on Theodor Pallady Boulevard (eastern Bucharest). The company is interested in land acquisitions in this area as well.
While there are plans for several kika stores in Bucharest, the Austrian retailer’s next store will be opened in Constanta, with construction due to start in September, through an investment of around EUR30 million. The company also bought land in Cluj and Timisoara, but plans for these cities have not been finalized yet.
According to Trade Registry data, in the 2009 calendar year, kika posted sales of EUR11.8 million and EUR4 million in losses. There is no information available on its turnover in 2010.
The company reports figures calculated for its own fiscal year, which starts in April, and Lund says that sales rose in the previous year (April 2010-March 2011), but below initial estimates, as a result of the VAT hike.
However, 2011 started better than expected and kika’s boss does not see a rebound trend, but rather month-to-month fluctuations.
(English version by Catalina Apostoiu; Editing by Loredana Fratila-Cristescu and Radu Bostan)