“Otter Distribution continued consolidation of its position on the local market in 2015, and all its divisions posted growth. We want to continue along this upward trend next year (2016 i.e.) and consolidate our position on the national market,” says Filip Schwartz, majority shareholder and head of the operations of the group in Romania.
Otter Distribution has more than 60 stores throughout the country, almost half of which Otter multi-brand stores. The group’s other brands include Salamander (multi-brand stores), Aldo, Clarks and Call it Spring (single brand store) and three outlets. It has recently introduced its seventh brand, Tezyo, with the opening of a new store in Baneasa Shopping City in northern Bucharest.
“The number of stores is 7% higher compared with 2014 because of the steady progress of the company this year (2015 i.e.). We did close or relocate some stores, after finding space with a greater potential.”
Filip Schwartz says his group has a presence in and will continue to focus on cities of more than 100,000 people. The company usually chooses to go to shopping centers and malls, since Romanians do 99% of their shopping at the mall.
“Given the development of the big shopping centers, we intend to increase the number of stores in key locations, especially in some of the main cities, such as Timisoara, Constanta and Bucuresti. Moreover, we will open new stores in some existing shopping centers in 2016, such as Promenada Bucuresti.”
Otter also launched its online store in the spring of 2015. Less than a year from launch, the store already contributes more than 6% of Otter stores’ revenue. The Otter stores are the most important division of the group, both by number (half of the total) and by revenue, according to ZF data.
“We want constant growth for the online segment and more than 10% of the total multi-brand Otter stores’ sales over the next two years.”
The Otter group targets average and above-average income customers, but each brand has a different target so they do not cannibalize each other’s sales, Filip Schwartz has previously said.
(English version by Loredana Fratila-Cristescu)