Unirea Shopping Center's profit halves, below planned budget

Bucharest – based shopping center Unirea Shopping Center, controlled by Romanian businessman Dan Adamescu, reported that it had a turnover decrease of 11.6 percent last year compared to 2009, reaching almost EUR 20 million. The company's profit went down by 50 percent, to EUR 1.4 million, compared to the previous year. The reported earnings in 2010 are 63 percent lower than planned. Failure to achieve the budgeted profit was triggered by the increase in operating expenses, to EUR 12 million, 58 percent above budgeted level. On the other hand, the company’s management said that closing some of the stores and the large planning periods for stores like H&M, New Yorker and Bershka, which were opened in the shopping center, were responsible for the decrease in sales. The rental income last year was of almost EUR 18 million, representing 88 percent of the turnover. Opened in 1976 as a department store, Unirea Shopping Center was converted in the 90s into a shopping centre. The complex has a total area of 83,971 sqm and 1,000 parking spaces. H&M has recently opened a store within Unirea Shopping Center, which also hosts a flagship Zara store, alongside with Bershka and New Yorker units. Alex Camburu, alex.camburu@romania-insider.com (photo source: Arhivafoto.ro)