Guenter Vosskaemper, the general manager of Praktiker Romania, the biggest DIY chain domestically (16 outlets), says the company is halfway through its network expansion.
Praktiker Romania DIY network generated sales of some 150m euros last year, up 43% year-on-year and will keep up the same fast growth pace on medium term. "Last yeares sales growth is partly due to the stores opened before 2005," says Vosskaemper.
Praktiker opened five outlets on the domestic market last year, in November and December, following investments of 8m euros per outlet, after having launched four outlets in 2005.
"In 2002, when we arrived on the Romanian market, we voiced our intention to develop a network of 15 outlets on medium term. We overshot this mark last year, so that now I can announce the next development stage for Praktiker Romania, which will take the network to over 30 outlets on the medium term," stated Vosskaemper.
At an average investment of 8m euros per outlet, the value of the companyes overall investments could exceed 250m euros by late 2009, when all the major Romanian cities would be covered, according to Praktiker plans.
The company last year expanded the sales area of its first store, opened in Voluntari, by some 1,500 square metres. Vosskaemper believes the DIY market will remain attractive on medium term owing to related sectors, such as constructions.
Since opening its first outlet on the Romanian market in 2002, Praktiker has sped up the pace of store opening from 3 to 5 outlets per year. The company announced it would keep up the same pace, opening 4-5 outlets per year, in the following years. Praktiker currently holds 16 outlets, being the biggest DIY network domestically, and is now carrying out another two projects, in Galati and Targoviste.
The two outlets to be added to Praktikeres network by September will take the value of investments operated by the German group in Romania to more than 156 million euros.
Praktiker (Germany) and Bricostore (France) networks, which entered the market almost simultaneously, in 2002, continue to dominate DIY retail, but the firms that have just entered the segment also announced aggressive network expansion plans.
Two international companies have already entered the DIY market last year, BauMax (Austria) and Mr. Bricolage (France). Another foreign network, Hornbach (Germany), started work on its first Romanian outlet scheduled for this year.
Home improvement retail networks owned by international companies could exceed 60 outlets at the end of 2008, according to playerse expansion plans. On medium term, they could operate cumulated investments worth above 750m euros.
The market also includes Romanian-held companies, such as Dedeman or Arabesque, which have developed networks of construction materials distribution centres.
Praktiker
Entered the market in 2002
Generated sales worth about 150m euros in 2006, up 43% year-on-year
Opened five outlets on the Romanian market last year
Expanded the sales area of its first outlet in Romania
Is carrying out another two projects, in Galati and Targoviste
The 2 outlets to be opened this year will take overall investments by the German group in Romania to over 156m euros
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