He says that this year the profit growth will come amid the doubling of BauMax Romania’s sales, from 61 million euros in 2007 to 110 million euros.
One of the biggest challenges the new manager is facing is to curb personnel turnover in stores, which generates additional costs. He also says he has lately seen personnel turnover reduce from 40% to around 30%.
On average, a domestic BauMax store employs 110 people, with the total number of people working with the Romanian subsidiary now standing at around 900 people.
Domestically, the retailer operates stores with sales areas ranging between 10,000 and 15,000 square metres, with around 30,000 items displayed.
Originally, the company planned to open five stores in 2008, but will end this year with only 2 new stores.
In Timisoara (western Romania) and Ploiesti, in southern Romania (both of them targeted for store openings in 2009), BauMax plans to develop some shopping centres on 8-9 hectare plots, with the projects due to also attract furniture retailers, supermarkets and apparel retailers.
„We now have 15 definite locations for expansion. The Romanian market is still highly attractive and this is why we’ll not stop at 22 stores,” says Frech.