The crisis cut deep into the figures of foreign networks present on Romania’s DIY market, considering in 2008 the market was dominated by Germany’s Praktiker and French Bricostore, and in 2013 Romanian-held Dedeman reached sales of above EUR600 million, topping those of Praktiker, Bricostore, BauMax and Hornbach put together.
In this context, on a market having around 120 large DIY stores operational, more than half of these have or will be undergoing major changes amid a sweeping “cleanup” process started in early 2013.
More exactly, in April 2013 Britain’s Kingfisher announced the acquisition of the 15 Bricostore units of Romania from Bresson family, in early 2014 Turkish businessman Omer Susli took over the 27 Praktiker stores, French Leroy Merlin has recently announced it reached an agreement with Austria’s Essl family to acquire the 15 BauMax stores, while Germany’s OBI is about to close down the seven domestic stores.
Britain’s Kingfisher came up with a new brand, Brico Depot and announced plans for a 50-store network in Romania, but the group is not speeding up expansion for the time being. While Kingfisher cut the number of items and store personnel, Turkey’s Omer Susli, Praktiker’s new owner, broadened the product range from 25,000 to 35,000 and wants to reach 45,000 items and also plans to hire around 400 persons in 2H on sales rebound.
Susli’s store will further operate under Praktiker brand and the network is set to have two units added in the coming months, in Giurgiu and Targu-Jiu.
As regards Leroy Merlin, a DIY “discounter”, the French network will leap from one store in northern Bucharest to 16 units nationwide. The expansion will allow the company to have a different marketing approach and especially a new product range.
OBI is the only player exiting the Romanian market without having a buyer for its stores, so that most spaces will be filled by Jumbo toy and children’s products retailer.
The “buying” investors, Kingfisher, Omer Susli and Leroy Merlin, will initially fight for the second position on the market, but the British and French chains will at a certain moment also challenge Dedeman’s leading position.
The construction market is still not giving any clear signs of a revival, except Bucharest at a certain extent, so that there will be a fierce battle for each client and price will be the main “bait”.
(English version by Catalina Apostoiu)