Small electronics retailers stick together

Faced with the steamrollering expansion of the major specialised chains such as Altex, Cosmo, Domo or Flanco, the small home appliances shops on the Romanian market have found a solution. They teamed up for an association and even plan to release their own brand and their own store concept in the medium run. “The first step is to state our existence,” says Dragos Mocanu, executive director of the Association of Trading Companies in the Home Appliances, Electronics and Home Comfort Equipment Business (ACEEC). He added the association comprised 37 founding members, which were holding 120 stores and accounted for 60-70% of the total “independents” operating on the Romanian market (i.e. those that hold one or more generally small shops in a certain area) in terms of value. This category has been the most seriously hurt by the expansion of the major national chains on the one hand and by the modern distribution methods on the other in the last few years. Mocanu said the independents’ goal was to maintain the 30% market share they had at the moment. Analysts see this share shrink to 20% in the medium run. ZF