The Esprit, Springfield and Debenhams brands launched onto the Romanian market by the AAV Group and Fashion Retail Group, companies that posted 8 million-euro turnover in first six months on the Bucharest retail market, are set to become available in malls in Cluj and Constanta by the end of this year.
The investment for the expansion of the three brands onto the provincial market is estimated to be worth 3.2m euros.
"We intend to open a Debenhams store in Cluj, which will also include a Springfield store, while in Constanta we also expect to open a Debenhams and an Esprit store, either by the end of this year, or by the beginning of next year, at the latest," said Vicentiu Zorzolan, the managing partner of AAV Group and Fashion Retail Group.
Within the next two years, Zorzolan also wants to enter the markets of other Romanian cities, such as Timisoara, Iasi and Brasov, and within the next four years intends the franchised brands to reach stores in Arad, Sibiu, Oradea, Bacau, Suceava and Sibiu. Since the beginning of this year, AAV Group and Fashion Retail Group have opened three stores in the new wing of Bucharest's Vitan mall, which involved a total investment worth over 3m euros.
The Debenhams store accounted for the bulk of the investment (2.5m euros) and covers 2,500 square metres, with over 55,000 articles for sale, which includes collections created by Romanian designers. "For this year, we have a development budget worth 10m euros. Our budget is not constraining our activities, the fact that we cannot find suitable locations is. Retail depends overwhelmingly on real estate projects," says Zorzolan.
The group's strategy targets the launch of shops within shopping centres, because the concept of a" shopping street", which is widespread abroad, does not yet exist in Bucharest, believes Zorzolan.
"High street retail in Bucharest is in a burgeoning phase, these type of streets, coffee shops and car parks do not exist, whilst a large part of the buildings are in a poor state. This concept could, however, develop in 7 or 8 years," adds Zorzolan.
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