Benvenuti footwear store network, set up in 2004, by Dan Pavel, one of the founders of Leonardo, the biggest domestic footwear retailer, projects turnover worth 15 million euros for this year, three times higher than last year.
"Outlets doubled every year, from five stores in 2004 to 10 last year, and we set a target of 20 stores for this year," said Adrian Cazu, Benvenuti stores manager.
Benvenuti opened four stores this year, with six more being set for opening this autumn. The increase in store number boosted the company's business. Benvenuti posted turnover worth 7m euros in first half of the year, compared with 2 million euros in the corresponding period of last year.
"The business growth was influenced by the increase in the number of stores and implicitly by the expansion of the distribution network," Cazu.
Benvenuti expects turnover to reach 15 million euros this year, compared with 4.3 million euros last year.
The company's strategy so far has been to open its own outlets only in important cities such as Baia Mare, Satu Mare, Cluj, Bucharest, Brasov, Timisoara, Oradea and Targu Mures. According to Cazu, the company also considers franchising for expansion. This February, the Benvenuti franchise was officially launched, with two of the six stores to be opened by the end of the year, to be franchised.
Benvenuti and Leonardo are direct competitors on footwear and leather goods market, yet, according to Cazu, "Benvenuti targets consumers with medium and high incomes, whereas Leonardo caters to the lower-end segment." Actually, Leonardo's positioning was one of the main causes for Dan Pavel's decision to leave Leonardo. Pavel, holding almost 50% in Leonardo agreed to gradually sell his stake to Florin Panea, the other founder of the company.
The transaction was carried out early last year, and the share capital is to be t
