H&M leaves Zara behind as Romanians buy more fashion

Swedish fashion retailer H&M increased its sales in Romania by 38% last year, to EUR 119 million, consolidating its first position in the fashion retailers’ ranking in Romania. The company’s profit, however, was similar to that in 2013, of some EUR 5.4 million, according to official data from the Finance Ministry. H&M made its first step in the Romanian market in 2011 but had an aggressive expansion strategy, reaching 40 stores in less than four years. Spanish brand Zara only had an 8.5% increase in sales, to EUR 93 million, but continued to be the most profitable fashion retailer in Romania, with a net profit of almost EUR 14 million, 14% higher than in 2013. Zara has 21 stores in Romania. Zara is part of Spanish group Inditex, the world’s biggest fashion retailer. Inditex is also present in Romania with its other brands: Pull&Bear, Bershka, Stradivarius, Massimo Dutti, Oysho and Zara Home. All of the group’s brands, three of which aside from Zara are in top 10 fashion retailers, posted higher sales and profits in 2014. The seven companies had cumulated sales of EUR 196 million, up by 12%, and net profits totaling EUR 30 million, 20% higher than in 2013. German C&A was the third largest fashion retail chain by sales in 2014. Its turnover went up 18% to EUR 62 million. The net profit, however, dropped by 40%, to EUR 2.7 million. C&A currently has 31 stores in Romania. Another German retailer Peek & Clopenburg went up to number four last year, as it increased its sales by more than a quarter, to EUR 35.5 million. Peek & Clopenburg only has three stores in Romania, two of which in Bucharest and one in Constanta, and will open a new one in Mega Mall, in Bucharest. Peek & Clopenburg stores have the highest average sales, of more than EUR 10 million each, as they sell more expensive brands. German retailer Takko Fashion, which sells clothing in the lower price range, was the only company in the top 10 that reduced its turnover in 2014. Takko was also the only one to record losses last year. Czech retailer Kenvelo had the biggest sales increase, of more than 50%, as well as the highest profitability increase. See the top 10 ranking below: H&M launches Romania online store Expansion boosts H&M’s sales in Romania Romanian behind Zara’s expansion on the local market promoted to Moscow Zara launches online shop in Romania Fashion retailers continue expansion in Romania, H&M – most openings in 2014 Andrei Chirileasa, andrei@romania-insider.com