The home appliances market, estimated at 1.3 billion euros this year, will experience continued growth until 2012, when it will settle at 3 billion euros, believes Lorand Szarvadi, general manager of Domo Retail, which last year was taken over by investment fund Equest.
Szarvadi believes the domestic market will eventually reach a level similar to the Hungarian market in terms of spending per consumer, because Hungary's 10 million inhabitants spend around 1.3-1.4 billion euros each year on home appliances.
"An equal market means that we should reach 3 billion euros," Szarvadi explained.
After the takeover by investment fund Lynx Property (a subsidiary of Equest Investment Balkans) Domo Retail has "started preparations" to become the number one retailer of home appliances.
However, Szarvadi's job is far from easy on a market where concentration increases year on year, while Altex, Domo, Flamingo and Rombiz estimate an overall market worth approximately 1 billion euros in 2008.
"This is a long term goal, which targets the leading position in 2010. We have a pretty authoritative and aggressive leader at present, which continues to target the strong development of retail space," Lorand Szarvadi stated.
Following the same trend, Domo, which posted turnover worth 193 million euros and net profit worth 9.5 million euros last year, announced the expansion of its retail space to 80,000 square metres this year from 55,000 square metres at the end of last year.
"We will open 17 more stores, although most of them will still be in Bucharest, and will be present in each new retail park, because every developer wants one or two home appliance stores," Szarvadi added.
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