“We have 1,600 employees working directly for Praktiker, in addition to those working for companies to which we outsourced various services such as security and cleaning,” Susli says.
Praktiker sales went up 4% to 5% this year, and the growth rate will most likely remain the same until the end of the year, he added.
The network posted almost 589 million (EUR133 million) revenue last year and stepped into the black, with a RON90 million net profit.
“2014 was the first in the last few years when Praktiker made profit and we estimate we will be profitable again this year.”
The company has 28 stores in Romania at the moment and plans to expand to 45. Susli says expansion will be done according to market needs.
“We decided to be cautious and not open stores at any cost. We will probably open two or three new stores next year, one of which in Bucharest. There is potential for a second Praktiker store in big cities like Cluj and Constanta.
Susli says he prefers self-funded expansion without turning to banks.
“When you expand on borrowed funds a lot you run the risk of losing even what is yours. We want no bank risk.”
He says 2015 has been hectic in all respects, especially lately, after the Colectiv nightclub fire and the ensuing change of government. Sales of DIY stores were affected in the aftermath of the nightclub fire, as well, with Praktiker seeing about 20% decline for two to three weeks after that compared with the same time last year.
Another thing that had an impact on the sales of DIY networks was a slower agricultural year, especially in Moldavia, where renovation and investment in construction is usually tied to the crop revenue.
The Turkish-born entrepreneur believes this year suffered from the lack of public investment.
“Construction is a locomotive for the entire economy. When we’re thinking construction of an apartment building, we’re thinking the actual structure and the construction material that goes into it, but a new home also generates demand for home appliances, furniture and other household items.”
Susli also says that despite foreign direct investment rising 66% to EUR2.5 billion in January-September, it should be stimulated even more.
“They are a key element for the development of the economy.”
The businessman also thinks Romania should find a way to stop migration of Romanians abroad.
(English version by Loredana Fratila-Cristescu)