According to a theory advanced by Business Standard, the effects of the financial crisis will hit the market in three waves, the first one affecting the auto and real estate markets, the second that of durable goods, electronics, household appliances and IT&C products, and the third impacting on the food industry and non-durable goods market.
“As of last year, retailers were confronted with liquidity problems and were forced to close some small, unprofitable stores. At present, there are many factors which could affect the market, which is why forecasts are difficult to make,” said Jiri Rizek, Chief Executive Officer of Flamingo International. Flamingo announced it will close some 15 small stores and postpone its expansion projects by one to two years.
The IT&C market was marked by an upward trend in the first three quarters of 2008, posting a 10 percent annual increase. However, as of October, due to new lending rules imposed by the National Bank of Romania (BNR), and the pressure of the international economic context, sales on the IT&C segment declined, and the market dropped to some €1 billion.
