EM&F goes to Turkey

Empik Media & Fashion Group's net sales revenue for H1 2008 was zł.918.6 million (a 47.9-percent rise y/y) and Q2 revenue was zł.490.5 million (a 50.9-percent rise). Its net profit was zł.25 million, up  132.2 percent y/y in H1 2008 and zł.18.05 million (a 33.1-percent rise y/y) in Q2 2008.

"This performance was possible thanks to a rise in sales in our stores, the acquisition of Maratex and Amersport and a rise in value of shares in Zara and Sephora. We also benefited from the strong value of the Polish currency," said Jacek Bagiński, EM&F Group's CFO. Maratex manages fashion and beauty brands in Russia, Ukraine and Kazakhstan, and Amersport distributes Converse, Merrell and CAT footwear in Poland.

Smyk, an EM&F subsidiary, is in the process of acquiring Spiele Max - a toy and children's clothing retailer operating in Germany. "[Spiele Max] was Smyk's main competitor in Berlin," noted Maciej Dyjas, EM&F's CEO. Spiele Max, which is to keep its name, has 41 stores in Germany. The value of the transaction is estimated zł.30.84 million.

Another destination for Smyk stores is Turkey. EM&F Group plans to launch its "test" store in Ankara this year and is ready to open another in Istanbul.

Turkey has the largest concentration of children in Europe and there are no toy-store chains there, explained Dyjas. Smyk's strategy for Poland includes developing big-box stores in retail parks to anticipate the entry of market players such as Toys "R" Us.

In Poland, EM&F wants to concentrate on the expansion of the Empik multimedia store chain.

"There is still a lot of space, such as in towns with populations of 50,000-100,000, where we can predict a steady yearly growth of 15-20 percent," said Dyjas.

Also, together with HDS Polska, Empik will develop more Empik coffee shops with a target of 120 outlets to be opened within the next four years.