Electronics and home appliances chain Domo is to expand its commercial surface area to 45,000 square meters, according to Mihail Laptoiu, chief operating officer of Domo Retail SA, the company that runs the home appliance retail chain.
The increase in surface area will help the retailer achieve a turnover in excess of 130 million euros.
"We have 107 stores at the moment, four of which are DomoLands, i.e. a format developed for surface areas of more than 1,000 square meters," Laptoiu explained. Domo stores currently occupy a total of around 32,000 square meters, allowing Domo Retail to make a 107 million euro turnover in 2004, company officials say.
Domo Retail split last year from Interexpo, a company established in 1994 and specialising in the importing, distributing and trading of electronics and home appliances.
Domo Retail took on the retail business through the Domo stores, while Domo Distribution Group took on the electronics and home appliance wholesale business last year.
Last year also saw the founders of the company being joined by a new shareholder, investment fund Romanian American Enterprise Fund (RAEF), which acquired a 20% stake in a 10 million euro deal. Together RAEF and Domo Retail launched the consumer finance company Estima Finance, with both parties owning stakes in the company.
The increase in the chain's commercial space will enable Domo Retail to achieve a turnover growth to around 130-135 million euros this year, company officials say.
"We estimate that our turnover will rise by approximately 25%," Laptoiu said.
The increase in Domo's sales will overlap with the growth on the electronics and home appliances market that has now recovered from the shock caused by the introduction of new lending regulations last year.
"Two months into the year, things have stabilised and are looking very different from last year: January was a good month, and I can't even begin to compare February," Laptoiu added. In February 2004, when the new lending regulations imposed by the National Bank came into force, sales of electronics and home appliances collapsed due to the sharp decline in customers taking out consumer loans. ionut.bonoiu@zf.ro
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