Romanian Flamingo Mulls Closing 15 Stores In Jan, On Lower Sales

In December, Flamingo recorded 10% lower sales than in the same month of the previous year as consumers spent less and lending conditions got harsher.

Rizek told MEDIAFAX the group will not close the Flanco World stores, with a total surface of more than 1,000 square meters, but it decided to postpone the network’s expansion plans.

 

The Flanco World network has 29 stores, each of them with a retail area between 1,000 and 3,000 square meters.

 

The retailer closed several small stores in the former years, but the total sale surface increased due to the opening of several large units.

 

Rizek said that larger stores are more efficient than the small ones, as consumers are attracted by the extended offer in the greater units.

 

Flamingo International is listed on the Bucharest Stock Exchange. According to latest data, the company is owned by a natural person, Dragos Cinca, with a 25.2% stake, followed by US investment fund QVT Fund, with a 12.94% stake, Flanco Holding, with a 10.59% stake, while investment funds Deutsche Bank and DWS Polska TFI own together 6.48% of Flamingo’s shares.

 

On the Bucharest bourse, Flamingo (FLA.RO) shares closed Tuesday at 0.0230 lei (EUR1=RON4.3025), down 6.12% on the day.