A proof of the UK group’s interest in Romania is its direct entry on the local market in 2012 after having been present there for a number of years via a franchisee, the Greece-based Marinopoulos group, which also operated the Starbucks coffee shops and cosmetics retail chain Sephora on this market. Marinopoulos is still in charge of the Starbucks brand in Romania.
Marks&Spencer has a direct presence in all the Balkan countries, says Sorin Stancu, who joined the company in 2012, when it entered Romania directly. Stancu, 39, was recruited while the retailer was putting together its team and now supervises the Balkan operations of Marks&Spencer, which has 19 stores in Romania, Bulgaria, Croatia, Serbia, Montenegro and Slovenia.
Romania is the most important market in the region, where Marks&Spencer operates six stores that generated some 30 million lei (EUR6.6 million) revenue last year, according to ZF estimates based on the data provided by the company.
“We increased our revenue by more than 10% in Romania last year and I expect similar growth this year, as the number of transactions and customers has gone up since I joined the company,” Sorin Stancu says, without elaborating further.
In 2012, Marks & Spencer posted RON26.1 million in revenue and a loss of RON6.4 million, according to the latest official data available.
If sales per store are the same in the whole region as in Romania, the 19 stores therefore generate some EUR20 million to EUR22 million sales.
Expansion plans are not yet settled
“Romania is the most interesting market in the region for us. We would like to expand, but don’t have anything planned for this year because there aren’t any new projects due to open.”
Marks&Spencer is looking at street front locations, as well, but this kind of retail is just beginning in Romania, Stancu says.
The company seeks 1,400 square meter spaces, where to sell women’s, men’s and children’s apparel, but the already operational shopping centers do not have enough available space, he added.
Marks&Spencer opened only two stores in 2013, one of Sofia and one in Constanta, SE Romania. Its Romanian stores are located in AFI Palace Cotroceni, Sun Plaza, Baneasa Shopping City, Bucuresti Mall, Felicia Iasi and City Park Constanta.
“Bucharest is our revenue generator in Romania,” Stancu said without providing any details. He says he analyzed the stores in business in Romania at the time he took his position with the company and decided not to close any of them.
The last store closing happened in 2011, while Marinopoulos still operated the network. Marks&Spencer entered Romania as a franchise in 2000, when big names like Zara and H&M were not even considering it.
Food and cosmetics may soon come
Now that it has a direct presence in Romania, Marks&Spencer is considering bringing its food and cosmetics division to this market, but has not set a deadline for it, Stancu says.
“Bringing the food division is a complicated thing do to in terms of logistics and infrastructure, but is a project under consideration, without a concrete deadline, though. We are also looking at the cosmetics business, because of the opportunities on the market.”
The Romanian retail market is developing, so there is room for new brands and new stores of the brands already there.
“We (Marks&Spencer i.e.) are developing with the market. Romanians are different from Croatians and Slovenians, who largely buy out of need. Local consumers are more impulsive.” (EUR1=RON4.5196)
(English version by Loredana Fratila-Cristescu)