Plafar brand to triple its business in 2008

“The turnover of the Plafar stores will increase from less than one million euro in 2007 to €2-3 million in 2008. The expansion wave will continue at the same pace in 2009, because we want national coverage, stores in all cities with over 100,000 inhabitants. National coverage means at least 50, but can also mean 100 units,” said Dorin Catana, General Manager of Centrofarm for Business Standard.

Most of the stores will be opened in new shopping centers. Contracts for 2008 with real estate developers have already been signed. The total investment in 2008 will reach €1 mln. The cost to set up one store is about €40,000-50,000. If a Plafar store has monthly sales of €15,000, the potential is €30,000 in the next two years, according to company officials.

“The business potential is double, that is the way we see it in one or two years. We are still due to develop a fidelity card, a magazine, but so far the number of stores has not been large enough,” says Catana.

The Plafar chain will be developed independently from the Centrofarm pharmacies. Currently, there are six stores in Bucharest and seven throughout Romania. Five more stores will be opened in Bucharest in 2008. There are 7,000 products, including teas, aromatherapy products, plant-based cosmetics, bio foods, and food supplements.