“We will most likely see a 40% drop in sales in the second half. This entail revenues between 100 and 150 million euros. We expect winter sales to lift the annual sales of the group”, said Cristian Moanta, marketing and sales director of Altex. Altex’s sales stood at 50% below year-ago levels to 83 million euros in H1.

The reduction of the retail surface from 105,000 to 96,500 sqm could have a negative impact over the retailer’s sales, and subsequently, on its market share, according to Dan Ostahie, chairman of Altex.

In the first half this year, the market experienced a sharp decline in sales, but the trend is expected to accelerate in the second half.

“The peak of the crisis has been reached in June. We expect the market to drop 35-40% by year-end, and to stabilize in third”, said Ostahie.

The most crisis-hit product category in the first part of the year was the tech sector, currently standing at minus 80%. This means that in the coming period, this sector will have the highest growth potential, together with electronics, electronic appliances and accessories.

Altex plans on expanding its network by another 10 stores over the next three weeks. The company’s strategy will be centered on financial restructuring, which is expected to be a broad and complex process, as Ostahie continued, without giving further details.