September 28 (SeeNews) - Romanian chain of jewelry shops Teilor said on Tuesday it aims to invest 30 million lei ($7.09 million/6.06 million euro) before the end of the year in expanding its store network across the CEE region.
For each new store opening or relocation, the average investment is 3.5 million lei and includes expenses related to the location and premium setup as well as merchandise, which amounts to approximately 1.5 million lei per store in Romania, the company said in a press release.
In contrast, the amount can reach up to 2.2 million lei for stores abroad, driven by the need to hold a larger stock to compete with local players.
In terms of local expansion, Teilor will open two new stores in Romania in the fourth quarter - in Vivo Mall in Baia Mare and in Bucharest. Moreover, the company will reopen the store in Alba Iulia Mall following the store enlargement and in Arad, following relocation to Atrium Mall.
On September 17, the jewelry maker inaugurated a new store in Budapest, marking its entry in Hungary, the third foreign market after Bulgaria and Poland. With the opening of the first store in Hungary, Teilor also launched the dedicated e-commerce platform for the Hungarian market.
Apart from Hungary, the further geographical expansion for the Polish market is already underway. Teilor will open before the end of 2021 three stores in Warsaw, two new ones and one relocation to benefit from increased pedestrian traffic. The company will also open the first store outside of Poland’s capital, in Poznan.
Additionally, the jewelry maker is in advanced negotiations to open two more stores abroad at the beginning of 2022, one in Wroclaw, Poland, and one in Budapest.
By the end of 2021, Teilor's network will reach 61 stores, of which 53 in Romania, four in Poland, three in Bulgaria and one in Hungary. Besides the investments in brick-and-mortar stores, the company is considering additional investments in the further development of its online platforms. Teilor currently operates five e-commerce platforms.
"Since the opening of the first stores outside Romania in 2019, our goal has been to continue international expansion at an accelerated pace. In 2020, we had to take a break due to the health crisis, but that period allowed us to consolidate Teilor’s plans for the CEE region," Teilor CEO Willy Dicu said.
"We are thrilled about our recent entry into a new market, Hungary, where we see a solid potential. We are already engaged in discussions about opening the second store in Budapest at the beginning of 2022. In the next few years, we want Teilor's store network abroad to be equal to our presence in Romania. In parallel, we consider entering mature Western markets."
In August, Teilor said it expects to increase its turnover by 64% year on year in 2021 to and expand its international presence by entering the Hungarian market. The increase in turnover will be driven primarily by a growing demand for high-end jewelry and an increase in the sale of engagement rings compared to 2020, Teilor added at the time.
Established in 1998 as a family business, Teilor operates with over 55 brick & mortar stores open both nationally and internationally.
In March, Raiffeisen Bank granted Teilor two loans worth a total of 2.62 million euro ($3.07 million) for working capital needs and investment in IT infrastructure and e-commerce applications.
(1 euro=4.9481 lei)
Additionally, TEILOR is in advanced negotiations to open two more stores abroad at the beginning of 2022, one in Wroclaw, Poland, and one in Budapest, Hungary.
By the end of 2021, TEILOR network will reach 61 stores, of which 53 based in Romania, four in Poland, three in Bulgaria and one in Hungary. Besides the investments in brick-and-mortar stores, the company is considering additional investments to develop its online platforms further to enhance customers' omnichannel experience. TEILOR currently operates five e-commerce platforms.