As the market of white goods is beginning to shrink in terms of volume and revenues, retailers are increasingly drawn to the IT&C segment, which boasts strong sales growth and where the technological advance is continually boosting the market. This is how Dan Ostahie accounted for the decision of Altex group to enter the telecom market together with Orange.
The IT&C segment currently accounts for about 15% of the group's transactions, but this percentage is on the increase, the chairman of Altex explained. The company this year banks on turnover ranging between 170-180 million euros, Dan Ostahie told Ziarul Financiar. "Sales of home appliances have dropped 5-10% this year, while the sales of IT&C equipment are 50% higher," specified Ostahie. "This has allowed us to derive an average growth rate of 10-15% as compared to the previous year," he said.
Media Galaxy in late August had posted revenues of 9 million euros, with only two stores. At present, there are four stores under this brand, and the company plans to expand its retail network for multimedia products to 14 locations by the end of 2006. "This is a store chain that can easily compete with Western ones," says Yves Gauthier, Orange's deputy managing director.
Following the agreement sealed with Orange, Altex and Media Galaxy, the company's multimedia equipment arm, have become distributors of products and services provided by the mobile telephony operator. All these can be bought from any Altex store.
dan.dragomir@zf.ro
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