June 10, 2014

German group Deichmann becomes largest footwear retailer in Romania

German footwear retailer Deichmann saw its net sales in Romania increase by 15 percent in 2013, to almost EUR 46 million. Deichmann  thus surpassed local shoe retailer Leonardo, whose sales declined by 27 percent, in 2013, to EUR 36.4 million, to become the largest footwear retailer in Romania.

The sales figures for the two companies are official, as reported at the Romanian Finance Ministry.

Deichmann entered the Romanian market in 2007 and has opened 65 shoe stores since. Its sales grew strongly as the network expanded. Only in 2013 it opened 11 new stores and reached more than 500 employees. Last year, the company sold some 2.5 million pairs of shoes in Romania, 200,000 more than in 2012, according to data released by the group earlier this year.

Meanwhile, Leonardo, that had been Romania’s number one footwear retailer for years, saw its sales decline year after year. In 2008, the company had a turnover of EUR 135 million and almost 2,400 employees. Last year, sales were 3.7 times lower and the number of employees fell to just 760. The company now operates less than 100 stores, compared to 200 in 2008. Leonardo went insolvent in 2009, due to lower demand on the local market. It then had EUR 100 million in debt.

Last year, Leonardo posted a EUR 7.3 million loss. On the other hand, Deichmann had a EUR 2.5 million net profit, 11 percent higher than in 2012.

The two companies’ main competitors on the local market also increased sales last year. Otter Distribution, which sells Otter and Geox shoes, but also other brands, reached EUR 21.6 million in sales, up 9 percent compared to 2012, and a net profit of EUR 1.75 million.

Benvenuti, which is owned by Romanian businessman Dan Pavel, posted sales of EUR 15 million, 13 percent higher than in 2012, while Musette, which is a local producer owned by Romanian entrepreneur Cristina Batlan, had EUR 10.7 million in sales, in 2013, up 22 percent.

Austrian footwear retailer HUMANIC also passed the EUR 10 million threshold in sales last year, after 10 percent growth.

Source: romania-insider.com