Romanian electro-IT retailer Flanco increases sales on higher consumer confidence

Romanian electro-IT retailer Flanco Retail increased its sales by 10% in the first nine months of this year, compared to the same period of 2013, to EUR 108 million. Telecommunication gadgets, large-screen TVs and appliances were the fastest growing segments, the company announced. The company’s management expects sales to accelerate in the fourth quarter, on seasonality factors, such as the winter holidays, as well as on discount campaigns, such as Black Friday sale, which will take place between November 21 and November 23. “Our goal in 2014 has been to increase sales, but also to be profitable and operationally efficient,” said Dragos Sirbu, Flanco’s CEO. “On a market that is price-sensitive, promotions and discounts can contribute to increasing market share on the short term, but lead to a consumer behavior which impacts a healthy business development on the longer term,” he added. Flanco’s sales were positively influenced by the recovery in consumer confidence, in the first part of this year, as job predictability improved, the exchange rate was stable and the people have adapted to the new economic environment. “The gradual recovery in consumer lending is one of the factors which supported the market growth. Credit sales increased by 25% compared to the same period of 2013,” Flanco’s representatives said. The telecom segment, which includes smartphones and tablets, recorded the highest increase in sales, some 80% compared to the same period of 2013, the company said. Large screen TV sales increased by 35%. Demand was higher on the premium segments, which include large screen tablets, no-frost refrigerators, 4K, OLED and curved screen TVs. The company doubled its online sales in the first nine months, but the largest part of its revenues still comes from its retail network, which includes 83 stores in 51 cities in Romania. Andrei Chirileasa, andrei@romania-insider.com