Flanco sees 40% surge in turnover

The retailers of electronic products and household appliances say there is still room for growth this year, even after sales doubled or even tripled in 2003.
“We posted 120 million euros in turnover last year, while the estimate for this year amounts to some 170 million euros,” said Marius Ghenea, general manager of the Flanco network. These figures have propelled the company into the top of the largest Romanian companies from this point of view, after having reported sales worth 55 million euros in 2002 and only 22 million euros in 2001.
But where is this 40% growth supposed to come from? “We forecast a16-18% growth of the traditional electric market – electronic products and household appliances,” Ghenea claims.
IT&C products are yet another growth factor, as they accounted for 10% of Flanco’s total turnover last year. “The IT&C market may surge, climbing to some 25%. But we are talking only about the individual clients’ market, not the corporate market,” Ghenea also says.
Another factor likely to fuel the turnover growth is the market share “theft” from the small independent stores. Therefore, whereas the large networks (Altex, Cosmo, Domo or Flanco) controlled more than half the market last year, and the smallest stores had 30%, analysts say the retail networks may come to hold 60% of the market in the medium term, while the share of independent stores is likely to drop below 15%-20%.
Flanco’s main competitors are the Altex and Domo networks. Altex reported turnover of 115 million euros last year. Interexpo, the company holding Domo, posted revenues worth 85 million euros in 2003. ionut.bonoiu@zf.ro