C.N.D.P.I. Romsoft, operator of the Depozitul de Calculatoare network, one of the leading players on the IT&C retail market, recorded a 60-70% decline in sales in euros in the first two months of this year.
"In foreign currency, sales were down 60-70% against the same time in 2008, but results are better than we were expecting at the end of last year. March results are down by almost 10% against those in January-February of 2009," Adrian Furnica, general manager of Romsoft, told ZF.
He says the decline is natural under the current economic conditions, and specified that the restructuring started in the third quarter of last year paid off. In October, Romsoft announced the closure of twelve stores that had yet to turn a profit.
The company was then left with 75 stores, and has 71 at present. Furnica says he chose to relocate four stores due to the rent, which was too high. "There are still owners unconnected to the reality of the market. If they are not willing to lower rent, we prefer to close immediately and relocate, because we have a flexible store structure."
Midway through 2008, Romsoft had a 105-store network. The manager believes the company will have an edge over its competitors as the largest IT-specialised chain, after many competitors have closed some of their stores. "When interest for this sector soars again, after the crisis has died down, we will have a viable presence on the market," added Furnica.
K Tech Electronics, which operates the Ultra Pro Computers chain, closed 12 stores in the first three months of this year, and now has 43 stores, while Twister (a chain controlled by Tornado Sistems distributor) went from 35 stores in September 2008 to 30 stores at present, according to data available on the company's website.
Furnica says the company will expand its product range in order to offset the sales decline. "We will have a richer offer available, in order to meet demand from various customers."
The Romsoft representative also says he has noticed that consumers now tend to prefer upgrades, rather than replace older systems entirely.
"People are also looking for cheaper products and stop to think a bit before making a decision to buy," explains Furnica.
However, this does not mean that store traffic has lowered significantly, according to Furnica. "The most disappointing thing is that, although consumers would like to take out credits, the financing terms are harsher than in the past. This time last year we would seal 50-60 credit contracts a day, and now we seal 5-7 daily, although there is demand," Furnica said.
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