THIS YEAR, H&M will double its number of stores in Romania

• Interview with Ewa Jarzemska, Marketing & PR Manager of H&M

Reporter: Dear Mrs. Jarzemska, how would you describe the Romanian market, compared to other markets that your company operates on?

Ewa Jarzemska: Romanian customers were extremely pleased with the inauguration of the H&M stores in Romania. We had people waiting in line on each of our stores! Of course, it is difficult to compare the markets, but from what I've seen so far, our Romanian customers are very interested in fashion and appreciate the latest trends. They have the will and the courage to play with fashion, to experiment with it and to find their own style of clothing, far more than our customers on the neighboring countries. Also, all of our models created in cooperation with our famous designers sell very well.

Reporter: How many stores did you open in 2011 and how many do you expect to open in 2012?

Ewa Jarzemska: In 2011, we have opened 11 stores in Romania and we intend to expand at a similar pace in 2012 as well. For the moment we have 5 store openings confirmed for this spring, in Arad, Craiova, Iaşi, Brăila and Suceava.

Reporter: Last year, between March and November, sales of H&M reached 37 million Euros. How do you expect they will be like in 2012?

Ewa Jarzemska: We have chosen not to make our forecasts public, because we operate in an extremely competitive environment, which changes very quickly.

Reporter: What were your sales like during the winter holidays?

Ewa Jarzemska: In January 2012, the total sales of the H&M, including VAT, denominated in local currencies increased 12% compared to January 2011. Sales in comparable units have increased 3%. Comparable units comprise the stores and the internet and catalogue sales in countries that have been in operation for at least a financial year. In December 2011, H&M group total sales including VAT increased by 13% compared to the same month of the previous year, in local currencies. In comparable units sales increased by 4%.

Reporter: How are you handling competition? What measures did you take to counter competitors/the economic crisis (for example: did you cut prices?)

Ewa Jarzemska: We believe that our offering is attractive to our customers - we are known and appreciated worldwide for combining the best fashion and quality with the best price. Because of that, we decide not to compromise on any of those factors, even despite the challenging economic situation, such as increasing prices of cotton, oil, etc.

Reporter: Do the products you sell in Romania come from?

Ewa Jarzemska: H&M does not own any of the factories that manufacture our products. Instead, production takes place at around 1,700 factories that are owned or subcontracted by almost 700 suppliers, mainly in Asia and Europe, including Romania. We order products at a given factory by model or product type and later distribute them to the stores all over the world - we do not change suppliers according to the country of sales.

Reporter: Thank you!