The past two years' expansion race, with investments of millionsof euros in ten to twenty new stores every 12 months, has leftplayers in the electrical IT retail players open to trouble. Thus,they saw sales per square metre drop to almost half in the firstsix months. After having posted lower-than-expected late 2008sales, Altex, Domo and Flamingo started 2009 by announcing moves toadjust networks and store closures. "The area was way oversized,250,000 square metres for three companies. It was 100,000 squaremetres bigger and there are still a lot of stores that need to beclosed," said Dragos Cinca, a shareholder of Flamingo, a retailerundergoing recapitalisation in the wake of 10m-euro losses in firsthalf. In the six months during which they worked to renegotiaterents, lines of credit and contracts with suppliers, Altex, Domoand Flamingo saw sales against sales area fall below 1,000euros/square metre.
Pentru alte știri, analize, articole și informații din business în timp real urmărește Ziarul Financiar pe WhatsApp Channels
