The Rombiz network could be sold

According to Romania’s Official Gazette, the shareholders of Rombiz Impex, a distributor of household appliances, electronic and IT&C products, is considering a sale or third-party transfer of the 160-store network, jointly owned by Hessam Mroueh and Ildiko Mroueh, with 70 and 30 percent, respectively.
The company reported registered net sales of €39 million and a net profit of some €715,000 in 2006, while Altex Group, the 26 percent market share leader of this segment in Romania posted net sales of €220 million in 2006.
Household appliance and electronic and IT&C product retailers estimated sales on the Romanian market worth €800-900 million last year, while similar sales in Bulgaria amounted to €500-600, and in Hungary to €2 billion.
Altex’s President Dan Ostahie, believes that international chains are waiting for the Romanian purchasing power to rise before entering the Romanian market, either through green field investments or acquisitions of a local store chain.   Average per capita spending would have to rise to €2,500, possible in the next 2-3 years on the basis of current annual spending of €1,780, compared to €1,650 in Bulgaria, €3,500 in the Czech Republic, and €4,400 in Hungary.
Other important players on the market, Flamingo International, with net sales in 2006 of €153.5 million, and Domo, with sales of €122 million, have a market share of 18 and 15 percent, respectively. The Turkish Sabanci Group bought a 51 percent stake of the Primex 51-store retailer, and executives are forecasting sales by Teknosa-Primex of €50 million this year, up 66 percent from 2006.