IKEA Romania Says Fincl Crisis Had No Effects On '08 Sales

The financial turmoil had no negative impact on IKEA Romania's sales in 2008, but the company expects a higher pressure on the family budgets of its clients in 2009, the company's retail manager Cornel Oprisan told MEDIAFAX on Thursday.

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IKEA’s store in Romania’s capital city Bucharest, operated in franchise system by Moaro Trading company, reported 20% higher sales in the last two months of 2008, compared with the same period a year earlier.

In the fiscal year ending on August 31, 2008, IKEA Romania, which has only the Bucharest unit, reported sales of EUR99.4 million, VAT included, aiming to reach this year a turnover of at least EUR110 million.

"We did not feel the turmoil’s effects in 2008, but we expect 2009 to be a harder year due to the clients’ lowering budgets that will lead to a change in their priorities and higher expectations as regards the price-quality report," Oprisan stated.

According to him, the consumers will be more interested in cheaper products, but without giving up the quality expectation.

End-November, the retailer announced its intention to extend its Bucharest store by around 2,000 square meters, from 26,000 sq.m to 28,000 sq.m, also considering the possibility to open a new unit.

The company plans to open another six stores in Romania, analyzing the possibility to build them in the towns of Constanta, Iasi, Cluj Napoca and Galati.

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