Retail and distribution: We are not revising the budget but are being cautious

“We wish to meet main set objectives: sales up 15-20 percent compared to 2007, but also a solid financial balance. However, these objectives will depend on the market’s evolution in this quarter, considering that the market is subject to a postponement in IT acquisitions,” said Catalin Butolo, Marketing Manager of K Tech Electronics, one of the largest IT retailers.

According to Butolo, the growth rate dropped due to the economic crisis, the high fluctuation of the exchange rate and new banking regulations on loans.

Iulian Stanciu, General Manager of Asesoft Distribution, said this year’s budget depends to a great extent on results in November and December.  

“Theoretically, we are meeting our targets. If the last two months turn out to be below expectations, the initial estimate will be reduced by $5-6 million [€3.89-€4.67 mln]. If results are good, we will meet the $135 million [€105.07 mln] target,” Stanciu told Business Standard. “It would be a mistake to think that miracles are possible. The market may plunge for the first time in 2009, due to the crisis,” he added.

The MarketOnline retailer maintains its initial 60 percent business growth estimate, up to €16 mln, but is trying to compensate for the 2-3 percent drop in demand by offering promotions and gifts. “We are not expecting 2009 to be a year with booming sales. If we register a 60 percent increase this year, I will not expect a rise in 2009,” Mugur Frunzetti, Managing Partner of Grifon Group, owner of MarketOnline.ro, told Business Standard.

Horia Chitu, Chief Executive Officer of Scop Computers, said that the IT sector will always be 10 percent above the economic growth rate. “In an optimistic scenario, I see an increase of more than 15 percent in 2009, while in a pessimistic scenario, one of more than 5 percent,” Chitu added.