Furthermore, the company decided to close one fifth of its 87 sales points due to the drastic drop in demand in last year’s final months. “The deterioration of the economic situation made us to reconsider our strategy, from a developing one to one that minimizes costs,” said the company’s Vice President, Cosmin Ionescu.
Casa Noastra ended 2008 with €27.6 mln in net sales, up 32 percent year-on-year, but below the initial estimate of 50 percent growth. “For 2009, we estimate business to maintain its 2008 level, this being the most optimistic scenario, and in the worst-case scenario, business could drop 10-15 percent,” added Ionescu.
The anti-crisis measures which will be taken in the near future include cutting the number of employees, depending on the evolution of net sales and the market, lowering marketing and advertising spending, together with rent-related expenses, by closing certain locations and renegotiating the remaining contracts. Furthermore, the regional expansion plan and investments will be suspended.
The Romanian double-glazed door and window market amounted to €700 mln in 2008, down from the €1 bln level in 2007. According to players in the field, the sharp drop in real estate investments and the difficulties related to taking out banking loans will lead to a decline of up to 50 percent in the double-glazed door and window market.
