Cosmo hopes to raise turnover through franchising

Primex, owner of Cosmo electronic and home appliances network, this year targets turnover in excess of 70 million euros. The company’s turnover last year amounted to 43 million euros.

The company’s main method of achieving this year’s target is expansion through franchising.

“We develop retail, as well as distribution operations, but our development resources are limited. This is why we decided to increase our number of stores through a franchise system,” said Gyorgy Baba, Primex general manager.

The Cosmo network, which currently consists of 63 stores countrywide, is thus likely to expand to about one hundred stores.

“Our target is to reach 100 stores, so as to become a truly national network,” Baba added.

The increase in the number of Cosmo stores this year will allow the network to account for half of all Primex deals.

“Last year, retail operations through Cosmo stores made up 35% of Primex’s turnover, the rest being represented by distribution. This year we want each of these activity segments to account for half the total turnover,” maintains Baba, who foresees the establishment of some separate companies for retail and for distribution.

The move also comes as a response to the evolution of the Romanian electronic and home appliances market over the last period.

“Last year, all sectors witnessed growth – national and regional networks, as well as independent stores. This year, things have changed and the market saw weak performances during the first months. Generally, when the market goes down, independent stores, which represent our clients on the distribution sector, are the most vulnerable,” explained the Primex official.

Like other players on the Romanian market, Primex decided to offset the weak evolution of the market through a promotional campaign that is currently unfolding across various sectors of the media, especially television.

“On a declining market, everybody wants to grow and this requires additional efforts. This year, we will boost our investments, both in promotion and development,” added Baba.
ionut.bonoiu@zf.ro