Mugurel-Horia Rusu, the general manager of the local unit of the German DIY chain, says 2011 was a better year for Hornbach, and a better 2012 may follow, after having overcome the difficult January and February, when the weather affected most retail businesses.
The company has the largest DIY stores on the local market, but its network is small, as Hornbach only opened one store a year from 2007 through 2010 and did not complete any new investment in 2011.
This year it will go to the second city outside Bucharest, after Brasov. It will open a store in Timisoara, where it will compete with three of the largest companies on the market, Dedeman, Praktiker and BauMax, as well as with regional DIY chain Brithouse.
“We will open the store in Timisoara this summer, in July or August. We’ve hired 90 people and are still recruiting for a total of 120 employees. The merchandise started coming in and preparations continue until the opening. This will be a type six store, which means a 22,500 square meter retail area, one of the largest in Europe, and the investment amounts to some EUR30 million,” Rusu told ZF in an interview.
The plans for the local market are not as aggressive as those of other competitors, but expansion was not completely halted, as was the case with other companies. Expansion is only targeting large cities for now.
The company has three stores in Bucharest (west, south and north of the city). It also has a store in Brasov, will open one in Timisoara and is looking at Cluj and eastern Bucharest, as well, Rusu said.
Hornbach’s network will reach five stores this summer, while Dedeman and Praktiker, the largest players on the market have 28 and 27 stores.
“I don’t want us to rush into things. We need security. We’re talking a retail business here: the sales may go up, but there’s got to be some profit left. We’re developing soundly and the future will tell us if we did well.”
The local DIY and construction supplies retail market can be considered one of the most competitive in Romania, with both strong local businesses such as Dedeman, Arabesque and Ambient and international companies with wide networks in the region or in Europe, such as Praktiker, Bricostore, BauMax, OBI, Hornbach and more recently Leroy Merlin operating on it.
(English version by Loredana Fratila-Cristescu)