Dedeman DIY and building materials retailer, controlled by brothers Adrian and Dragos Paval, has doubled its store network in the past two years and a half, practically since the onset of the crisis, and is expanding further, with another two stores scheduled for opening by yearend.
Dedeman opens the third store this year in Baia Mare on Friday, after the ones in Cluj and Severin, and another two openings are scheduled by yearend, with one in Alba Iulia.
Investments operated over the past two years and a half have driven the company onto the leading position in DIY networks’ ranking, with EUR360 million turnover last year. The company is on schedule with attaining the 10% revenue increase to some EUR400 million sought for this year.
“As for the trajectory of sales, we can say we are on schedule, in line with the set plans and budgets. The Alba Iulia store will be opened in October or November, on a plot of land bought from Albalact. I can only say that the Alba Iulia store will not be the last to be opened this year. There will be one more after it,” said Paval for ZF.
Paval took advantage of falling real estate prices and bought
land at “crisis prices”, also counting on the support of the banks
it works with: BCR, ING, Raiffeisen, RBS and UniCredit
Tiriac.
The expansion campaign carried out during the crisis was the most
aggressive in the entire modern trade sector.
Are Dedeman’s investments justified considering the constructions
market is still frozen?
“There is a recovery in the constructions sector, but a slight one. Repairs and renovations are still the main activity of our clients. The market’s trend is as expected,” says Paval, without providing further details on first half sales.