The Bacau-based Dedeman group, which operates one of the biggest chains of stores and warehouses for construction and home decor materials, last year saw profit worth 25 million RON (7 million euros), double the figures posted in 2004.
In 2005, the company derived an about 45% higher turnover, 254 million RON (70.5 million euros), according to company representatives. In euros, the growth in turnover is approximately 60%. Dedeman Bacau is owned by the businessmen Dragos and Adrian Paval and is among the few specialised networks outside Bucharest, which compete with major international players on the market, such as Praktiker or Bricostore.
Mainly known as a network of construction materials stores, the Bacau-based group has gradually expanded its area of activity, investing in a furniture plant and in a car showroom for the Dacia-Renault-Nissan brands. Praktiker is the biggest international player on the domestic DIY market.
Besides Bricostore, other major players such as Baumaxx or Mr Bricolage are likely to enter the market over the following period.
Dedeman has positioned itself as one of the most powerful regional players over the past years, dominating the market of eastern Romania. Last year, Dedeman started expanding its network southwards, by opening a store in Braila and voicing its intention to enter the market of Bucharest.
The Dedeman group late last year announced it acquired a plot of land in the southern part of Bucharest, on which it is going to build a new hypermarket. The company''s representatives will invest around 5m euros in the Bucharest store, as part of the group''s nationwide expansion strategy.
Dedeman stores are similar to DIY in terms of concept. By opening such stores, the Dedeman group is trying to gain a solid foothold with an outlook to the future development of the major international networks.
Last year, the Dedeman network added another five stores, in Braila, Iasi, Bacau, Vaslui and Onesti.
Dedeman at the end of last year opened a hypermarket in Braila, with an area of 7,500 square metres, in the wake of investments worth 4.5 million euros. The shopping centre in Braila is the sixth unit Dedeman has opened over the last three years and the first one opened outside Moldova.
Beside the five stores it opened last year, Dedeman owns another 20 units in cities such as Comanesti, Onesti, Roman, Suceava, Bacau and Iasi.
Last year, the group budgeted investment worth around 11-12 million euros, according to the group''s representatives. The group invested 3 million euros in a car showroom in Bacau, operated by the newly formed Dedeman Automobile company.
The expansion of the network is based on the strong development of the construction materials market and the demand of loans for house acquisitions and constructions.
Dedeman Bacau
* Set up in 1992, has over 700 employees
* Operates one of the biggest networks of stores and warehouses for construction and home decor materials
* Last year derived profit worth 7m euros, double the level in 2004
* In 2005 posted 45% higher turnover to 70.5m euros
* Has gradually expanded its area of activity, investing in a furniture plant and a car showroom for the Dacia-Renault-Nissan brands
* Last year added 5 units to its network
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