“We believe 2012 will be a transitional year. Some countries have experienced only a slight recovery from the crisis, while others are almost out of the crisis. Romania belongs to the second group,” he says. Carlo Stefanel became Stefanel manager at the beginning of the year, having completed his university education in 2008. His predecessor was Lucio Manfreda, who for eight years ran Stefanel’s Romanian operations.
A 23% sales rise
Carlo Stefanel says the Romanian business rose 23% against 2010, helped by the positive evolution of the stores in Piata Romana square and in AFI Palace Cotroceni mall. The two stores were opened last year. The Piata Romana-based store, located in a historic villa covering over 350 square meters, has actually been relocated form Calea Victoriei street. Stefanel, one of the brands that wrote fashion history in Romania, closed down its Calea Victoriei store, which it had opened in 1991, after its rental contract expired. The store was replaced by Max Mara.
“We opened the Piata Romana store on October 6, 2011. We rented this big, elegant villa where we present our men’s, women’s and accessories collections. It was a significant investment, but we trust both the Romanian market and this location,” Stefanel explains. The Italian brand invested EUR400,000 in the store, which it now says is one boasting the biggest sales.
This year the company will open one single store, in Iasi, in the Palas complex. Carlo Stefanel says he is also looking at several other projects, but most have 2013 as opening date. The company has so far been interested in street locations, as well as in stores inside malls and luxury hotels.
Expansion in malls continues
“Shopping centers continue to be a good business model in Romania, unlike street locations. We have one street store in Piata Romana square and one in Brasov. I think street shopping is the future, but for this to happen Romania should also keep its streets in good condition.”
At present Stefanel has ten mono-brand stores in Romania, with a turnover of EUR5 million, according to Carlo Stefanel.
In 2010 the turnover of Stefanel Romania was 13.1 million lei (around EUR3 million), down from RON16.9 million (EUR3.8 million) in the previous year, according to information published by the company on the website of the Finance Ministry. Stefanel Romania’s best year was 2007, when turnover exceeded RON21 million (EUR4.8 million).
8,000 loyal customers
In the past three years consumption pursued a downward trend. The overall decline recorded between 2009 and 2011 stood at almost 20%. However, Stefanel relies on the 8,000 loyal customers it has on the Romanian market, according to data provided last fall by company officials.
“In this respect Romania is the country with the biggest percent of loyal customers worldwide. Our loyal customers make up over 50% of overall customers in Romania,” Stefanel explains. (EUR1=RON4.3792)
(English version by Daniela Stoican)