Supermarket and hypermarket chain Trident recorded a 22% turnover decline in the first six months of the year, but the opening of two stores scheduled for the second half of 2009 could help the business post growth.
Trident Trans Tex, the chain’s operator, held by Sibiu-based businesspeople Constantin and Alina Mateescu, posted 68.7 million RON (16.2 million euros) turnover in the first half of the year. The 22% decline recorded in the first six months against the same time in 2008 is similar to that reported by another two Romanian chains – PIC and Primavara, in the same interval.
The opening of the Trident Shopping Center in Sibiu, financed via a 10 million-euro loan from MKB Romexterra Bank, as well as the launch of two supermarkets in the second half of the year could enable the company to preserve its 2008 turnover level this year or even to surpass it.
"For 2009 we have two firm openings in rented space – two express supermarkets, occupying less than 1,000 square metres each. The chain’s expansion will definitely enable us to reach the 2008 turnover or even exceed it," said Theodor Domocos, Trident’s marketing manager.
Last year the company posted 60 million euros in turnover, according to data provided by the company official.
The opening of Trident Shopping Center in April was the biggest investment completed this year by a Romanian company operating in retail, a market that has slowed down expansion amid marked decline in consumer spending. Investments in this project are estimated at 15 million euros, with the shopping centre having an 8,500 square-metre Trident hypermarket as anchor tenant. Domocos puts the first-half decline of the FMCG market at 30%, specifying that the food segment was more affected by the economic difficulties.
"We are also seeing a client traffic decline in retail. Now a lot of people come with their shopping lists and choose products very carefully," says Trident’s marketing manager.
The company relies on either preserving or boosting its turnover in 2009 in order to salvage profit.
"Most retail operators now have to charge lower markups, amid a major client focus on low-price products (whose markups are not very high under normal conditions, either), as well as considerable pressure on prices in general due to the extensive promotional offers," says Domocos.
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