Sport System Development, which after this month will be called Extenso, the exclusive Romanian distributor of the Lotto, Stonefly, Gas, Italgreen (artificial grass) and Myrtha Pools (Olympic swimming pools) brands, estimates a turnover valued around 30 million-euros for the end of the 2007 financial year. Some 16 million euros are expected to come from the sports and fashion divisions and about 14 million euros from the real estate division. If the forecast is accurate, this would result in a 140% increase in business against the turnover of 12.5 million-euros achieved in 2006.
"The retail strategy for 2007 will include the expansion of our Lotto store network and investments in the image of some of our current stores. At present, we are investing in expanding the retail space in stores such as Lotto Mall Vitan in Bucharest and the Lotto Mall Shopping Center in Ploiesti," stated Mirela Rosca, Extenso's CEO.
Extenso, a Romanian-Italian joint venture, is structured into three divisions, Extenso Sportswear, Extenso Fashion and Extenso Real Estate. It currently owns 26 stores throughout the country and is also present in another 60 independent outlets. The 2006 turnover was 23% higher than the turnover of 2005, when Extenso handled a business worth 9.6 million euros.
"The positive trend was prompted by strong investments in expanding and developing the network of stores, as well as in independent distribution. Growth was also generated by extensive investment in developing the range of distributed brands and the business lines of the company," stated Mirela Rosca.
The Lotto brand, through which the company launched its business in 1995, is currently sold in 20 stores. Their number is set to increase by another four outlets this year, including Bucharest, Pitesti, Constanta, and Cluj, with the total investment to stand at around 600,000 euros,
