Family Furniture Maker to Close

Furniture sales on the local market will go up some 10% this year, to approximately 600 million euros, twice the growth pace reported in 2006 (5%).

The large number of residential projects to be completed this year will drive the growth of the furniture market. “The domestic and Southeast European (furniture, i.e.) retail market witnessed a fast growth pace in 2005, namely 25%. The growth pace slowed down in 2006 and became normal.

At the end of the year (2006), it most likely revolved around 5-6%. We expected a 10% annual growth pace, but the market witnessed a slowdown. We estimate an average growth of 10% in 2007,” Dan Sucu, the president and majority shareholder of Mobexpert, the top player on the domestic furniture market told ZF.

Sales of furniture on the domestic market amounted to some 560m euros in late 2006, according to estimates made by the furniture companies.

“The growth seen by the furniture market is practically in line with the general economic trend. Thus, the GDP growth stood at 4-5% in 2005, it amounted to nearly 6% last year and it will continue over the following years, according to the estimates”, said Cornel Oprisan, retail manager of IKEA Romania.

The relaunch of the furniture market will be supported, to a great extent, by the imports operated at lower prices than those levied for the Romanian-made furniture.

“The furniture production for the domestic market may rise by 7-12% over the following year. Estimates regarding the growth of furniture production are based on increasing demand coming from the home and office construction fields. Although demand for furniture on the domestic market is promising, it will be topped by imports from the EU, which will benefit from a low EUR/RON exchange rate and from prices that will be highly competitive with those levied by the domestic producers,” said Ioan Marginean, the economic manager of Silvarom, one of the significant players on the furniture market.