Otter Distribution brings in Romania the two top-selling footwear brands in the world – Clarks and Geox.
“We want to open a new store chain. It is called Promenade and it’s a different concept. It has a slightly different target than Otter,” Schwartz said.
“We will open the first store in Tom Constanta by the end of the year, and we hope that by the end of 2012, depending on how things work out, we will create a network of ten stores,” he added.
Schwartz was born in Bucharest and has Romanian citizenship. He has been involved in the domestic footwear business for almost two decades.
Schwartz holds a 97% stake in Otter with the rest being controlled by Vilma Schwartz, according to Trade Registry data.
Fillip Schwartz says he will open Promenade stores in shopping centers and galleries also hosting hypermarkets, as “our target is not necessarily Romanians going to malls”.
The client of these stores is aged between 30 and 50 and seeks comfort. Prices will be somewhat lower than in the case of Otter, and brands will include Ara, Fluxx or Otter.
“There will be different collections from Otter and prices will range between EUR49 and EUR79, while Otter prices range between EUR49 and EUR149”.
Moreover, the stores will have between 80 and 120 square meters, somewhat smaller than Otter stores. The cost per store stands at EUR400 per square meter, without the product stock, namely between EUR32,000 and EUR48,000 per each Promenade store.
“We’ll open stores first in Constanta, Cluj and only then in Bucharest,” said Schwartz.
Schwartz is counting on expansion after having closed a Fila store, two apparel stores and focused on the footwear business, a sector where he also closed unprofitable stores, over the past three years.
Schwartz is announcing the expansion plans for Otter Distribution after sales in the first few months of this year stabilized at the 2010 level. Still, sales registered in 2011 are lower than in 2009 and 2008.
“In absolute figures, we hope to have a 5-10% higher turnover this year compared to 2009,” said Schwartz.
“2010 was our most profitable year, more profitable than 2008. Net income topped 4.5 million lei (about EUR1.1 million) in 2010”, he added.
(EUR1=RON4.2294)