Businessman Dan Sucu, one of the best-known domesticentrepreneurs, says he would not take a furniture plant at thismoment even if someone gave it to him for free. "Since 2003,furniture production in Romania has been a real adventure. Thefluctuations of RON "exotic currency" are bringing additionalvariables that cannot be controlled. In my business, the RONfluctuating at such values is nothing but a hindrance. Moving tothe single currency, the euro, is more than welcome," said Dan Sucuin an interview with ZF.
He owns Mobexpert and on Monday reported 21% lower annual sales,a drop double the initial estimates, and announced he axed 800 jobsduring the toughest year of the economic downturn.
In euros, the crisis wiped out 54m euros from the turnover ofthe strongest group in the furniture industry, which has now cometo generate just 115m euros. The group had got beyond the 100m-euromark in terms of turnover in 2004. The crisis has strongly erodedthe profit of Mobexpert, which in 2009 was at the limit ofprofitability.
Mobexpert operates 34 stores and hyper-stores in the region andeight furniture plants.
Sucu says all the retailer's stores saw declining sales lastyear, but the best results were reported by the store in Baneasa,which posted an 8% decrease.
Sucu expects exports to pick up, particularly on the Frenchmarket, after in 2009 sales abroad, generating 17-18% in thecompany's turnover, went down by 30%.
"Instead of reaching 11-12% in terms of exports, I believe we'llgo to 25% amid the rebound of the French market, but it's hard tobe profitable 3,000 kilometres away from your market," Sucustates.
As for the Romanian market, steps such as renting surplus space,cutting advertising investments and slashing the number ofemployees led to a 10% drop in expenses at the highest.
In 2010, Mobexpert will "probably" close one or two plants, buteverything depends how talks with banks go.
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