Building its own network
Szczecin-based Vobis, a retailer of electronics and IT equipment, has submitted its issue prospectus to the Polish Financial Supervisory Commission and hopes to debut on the WSE in Q4 2007.
The value of newly issued shares will exceed zł.100 million. In addition, the company will sell some existing shares which are currently held by one of the main shareholders. "The money we raise from the market, as well as the profits we make, will be dedicated to the implementation of our broad investment plan," said Dariusz Pietraszkiewicz, president of Vobis. The plan is worth a total of around zł.230 million.
"By the end of 2009 we want to extend the network of Vobis Digital stores with 50 of our own shops and 65-70 franchises. Currently, we have about 170 shops [altogether]," said Tomasz Kordas, Vobis' vice president.
Casting the net
Vobis is also planning to build a network of Vobis Mobile stores, where the company will offer internet and mobile products and services.
"Three stores are already operating. By the end of the year we will have opened 10 stores. Eventually there will be about 200 such stores across Poland," said Kordas.
Vobis has already signed a contract with Nokia to open nine exclusive Nokia stores to be located in Poland's largest cities within the next five years. The company plans to develop an "online supermarket" which, unlike its current online store, will offer a wider range of products and manufacturers.
"We have also launched our B2B offer for SMEs. Now we have 12 regional consultants who go to our clients and offer whole solutions, not just products," said Kordas.
He notes that the company is growing, so it plans to build a new warehouse in Central Poland to meet its needs. "We are now negotiating a deal with Prologis, which will construct and lease a warehouse for us near Piotrków Trybunalski. We are planning to move there before the end of 2008," Kordas said.
In addition to its plans for organic growth, acquisitions and international expansion are also a part of Vobis' strategy. According to Kordas, the firm is interested in small and local retail networks as well as "firms operating in the online sector, with the potential for growth." In this area, however, the company hasn't moved past the exploratory stage. Concerning international expansion, Vobis is eyeing the Czech Republic, Slovakia and Romania as possible locations.
Staying on top
This plan is secondary, however, to maintaining and developing its leading position on the domestic market, which, according to a 2006 report by industry newsletter Teleinfo 500, is worth some zł.20 billion. Aleksander El Mahdi, an associate analyst at International Data Corporation Polska, noted that over 2.3 million computers were sold in Poland last year.
"In 2006, the number of computers used in Poland was up to 6.8 million. By 2010, that number will grow by four million," he added.
Marcin Bogucki, chief analyst at IDMSA, pointed out that the market remains very difficult, despite growth expectations. "Competition is growing and every player in the market has growth plans. These firms will have to be very imaginative to attract more customers. I would expect margins to fall in the sector in the immediate future," posited Bogucki.
In H1 2007, Vobis' revenues exceeded zł.375 million, almost 50 percent higher than in H1 2006, and net profit reached zł.7.1 million.
