The increase in sales came after the EUR47 million investment completed last year when it opened four stores in Bistrita, Slatina, Ramnicu-Valcea and Constanta (north, south and south-eastern Romania). Last year was difficult, though, with its bad weather for construction in the first few months and political instability.
“We made RON2.4 billion revenue in 2012, about EUR540 million, in a very difficult year with so many rounds of elections. The new stores were the ones that contributed to the growth,” Dragos Paval, majority shareholder and chairman of Dedeman told ZF.
According to ZF’s calculations, average sales per Dedeman store fell to EUR19.3 million last year from EUR20.5 million in 2011, considering the length of time the new stores were in business.
Last year’s expansion took Dedeman’s network to 30 stores, turning it into the largest in Romanian DIY retail, leaving Praktiker (27) behind. This year’s expansion plans include opening new stores and expanding online.
“We have been working on the online store project for a year and five months already, which we will start testing in Bacau at the end of February. We plan to sell to the new generation that doesn’t walk into a store often and we have products like decorations and famous home appliances brands that can be bought online, as well. The store will support traditional stores for the time being, but we believe it is a project for the future,” Paval said. (EUR1=RON4.3764)
(English version by Loredana Fratila-Cristescu)