Extenso, the domestic importer of Lotto, Stonefly Italgreen and Gas brands, will open at least 4 stores this year. Currently, the company owns a network of 32 monobrand shops, 33% more than in 2006.
"At the beginning of the year we'll open 3 new Lotto stores in Bucharest, Brasov and Constanta, and another one for Gas in Baneasa Shopping Center, Bucharest," stated Mirela Rosca, general manager of Extenso.
Last year, the importer opened eight monobrand stores, five under the Lotto brand and three under the Gas brand, in Bucharest, Pitesti and Cluj.
Overall, network expansion required investments worth 820,000 euros. "Most investments were in the sportswear and fashion units. For the Lotto stores we earmarked a 500,000-euro budget and a 320,000-euro budget for Gas".
This year, the importer will also invest in the relocation of its own headquarters and warehouse, with the budget expected to total 4.5 million euros. The land for the two buildings cost 1.5m euros and covers a 6,000 square metre area, equally divided between offices and the warehouse.
For 2008, Extenso has budgeted turnover worth 22.4m euros for its sportswear and fashion unit, up 40% against the previous year, when it reported turnover worth 16 million euros. "Market development and the expansion of our portfolio make us believe the estimate is realistic. For 2008, we plan to expand our portfolio by bringing another two fashion brands to Romania," announced Rosca.
According to her, the 2007 results of the sportswear and fashion units were affected by the exchange rate trend, after the increase compared with the previous year amounted to only 30%.
The Lotto brand accounts for as much as 75% of the company's sales and this is why the company wants to find a different approach by developing other niches.
Besides the fashion and sportswear unit, Extenso also has a real estate unit. In 2007, group turnover reached 30m euros, whilst the profit margin ranged between 8% and 10%.
The real estate unit is now carrying out a project that entails flats in Olimp, Sara Sea View, with total investments in excess of 10m euros. The company's management says the unit's success has encouraged the company to continue investing in real estate.
On the sportswear market, estimated at 160m euros in 2007, Extenso competes with companies such as Elmec (importer of Nike), Adidas and Puma.
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