Mobexpert sees extensive growth

The chairman of Mobexpert, the biggest domestic player on the furniture market, says he managed to offset the negative effects of last year”s euro depreciation by redirecting production from exports to the domestic market.

In 2006, Sucu will endorse the same market policy, accompanied by investments in new furniture ranges, largely aimed at the regional market.

“2005 was a very good year for furniture, but only on the regional market. For exports, it was a disastrous year amid the appreciation of the euro against the domestic currency. Fortunately, we were able to redirect production at the domestic market, which was much better last year,” said Dan Viorel Sucu, chairman and majority stakeholder of Mobexpert.

In 2005, the euro dropped 8% against the RON, hurting all exporters.

Mobexpert group, which comprises several companies (furniture plants, real estate and retail firms), last year derived turnover worth 150 million euros, about 14% higher than in the previous year.

The most solid growth was registered in retail activities, as the sales logged by the stores based in Bucharest and in the major cities (Brasov, Timisoara, Constanta and Cluj) surged by almost 40%, more than double the company”s own estimates, which stood at 18%.

“Sales increased even though we kept the same commercial areas. Practically, in 2005 we opened only the hypermarket from Brasov, toward the end of the year, but in this case, too, we only expanded an already existing store. I expect this year”s growth pace will not be as alert as last year”s. I see a 15% increase. We will reap the results of this year”s investments in 2007, when I foresee 25% growth,” the Mobexpert chairman mentioned.

In 2006, Mobexpert plans to open three new furniture hypermarkets.

“While we saw intensive growth in 2005, we will have extensive growth in 2006. We will open the store in Baneasa, we will open a store in Ploiesti, and, if we can, in Constanta,” mentioned Sucu.

The company has an office furniture store in Belgrade (Serbia) and plans to open the first furniture hypermarket abroad, in Sofia, Bulgaria, this year.

georgiana.stavarache@zf.ro