“Small players will certainly be affected and a part of them will collapse or will be forced to merge. The ‘survivors” will be those who will find solutions to optimize costs, and to manage resources. It is all up to their business strategies and a long-term vision”, he said.

The reduction of sales in installment system together with the flagging consumer confidence is the first sign of the crisis in case of Staer. “In September, due to the crisis, Staer’s sales declined 5% from last year,” said Staer’s representative.

Staer’s turnover for 2008 will also be affected by the global financial crisis. “Given the delay of the development plans (opening new showrooms – where we depend very much to real estate developers) and the current economic crisis, it is possible that the initial forecasts for this year turnover will not be reached. The last two months of this year will be vital in acquiring our financial targets. In the past years, we would register a peak in sales, but now, in the context of a national and international crisis, it is possible to see a different evolution,” Stefan Niculae explained.

In the furniture industry, the effects of the crisis in Romania are lighter than in the neighboring countries, such as Hungary or Ukraine. “Compared to Hungary, our production costs are lower and the indebtedness level is lower. Compared to Ukraine, we are macroeconomically protected by the European Union and in Romania, the services market and infrastructure are more developed”, representative of the furniture retailer said.