CELLINI’s turnover will increase by 15%, while profits will be down 40% (Romania)
In a recent interview to dailybusiness.ro, Alessandro Amato of CELLINI, the largest retailer of watches, jewelry and Swarovski crystals in Romania indicated the company’s turnover will increase by 15% especially considering the new store openings, while profits will be down 40%. Mr Amato indicates the dropping purchasing power of the middle class with monthly earnings between EUR 2000 and EUR 5000. He also admits that the recent layoffs of many state employees have also taken a toll on company’s sales, as holders of senior positions used to be loyal customers of CELLINI.
The best performing stores are those in Bucharest located within the major malls. Until now, the company closed only one store, in the city of Constanta, strategic reasons motivating the decision.
CELLINI’s competitors are HELVENTASA and MICRI GOLD. Helvetansa currently holds the largest portolio of luxury watches and jewelry however its turnover remains smaller than CELLINI’s with only 2 locations. As for MICRI GOLD, it carries exclusively BVLGARI and CHOPARD in Romania (multibrand) and it has 2 shops in Bucharest.
In spite of the market size, Romania being the second market in Eastern Europe after Poland, sales of luxury watches and jewelry are lower by at least 30% than in Bulgaria and Serbia, especially due to the small retail networks.