In the first quarter of the year, sales per unit amount to some 80 percent of the value registered in the first three months of 2008.
“The recession forced the Domo group to take certain measures, as it happened on the entire market. Following some profitability calculations, we decided to close certain units with poor evolutions, opening new ones in areas with higher potential, as well as cost cuts,” Domo’s Marketing Manager, Gabriela Mandrea, told Business Standard.
On a market where the most pessimistic voices talk about a 40 percent annual decline, Domo’s evolution is above that of the market, with drops of some 15-20 percent. According to company officials, one of the solutions which can maintain the business on an upward trend in 2009 is the cost cutting policy, that includes renegotiating with each supplier at a time. “Since the beginning of this year, we have initiated the renegotiation process with suppliers, and the discounts sometimes amount to 50 percent,” Domo representatives said.
The company posted €204 million in net sales in 2008, up 16 percent calculated in lei and five percent in euro. The retail household appliance, electronic, and IT&C product market is valued at some €1 billion annually, with Altex, Flamingo, and Domo as its main players.
