Further expansion of DIY retailers despite market downturn in Central Europe.
According to the latest PMR report “DIY retail in Central Europe 2012. Market analysis and development forecasts for 2012-2014”, the Do-It-Yourself retailers in the Central European region continue the expansion as since 2008 the number of stores has increased by 36%, while the market dropped by 19% in same period. We expect further expansion of about 12% in 2012, mostly in Poland and Romania.
Published on: Mar 4, 2016
Transcripts - Further expansion of DIY retailers despite market downturn in Central Europe.
Press release, 7 March 2012Further expansion of DIY retailers despite marketdownturn in Central Europe. According to the latest PMR report “DIY retail in Central Europe 2012.Market analysis and development forecasts for 2012-2014”, the Do-It-Yourselfretailers in the Central European region continue the expansion as since 2008the number of stores has increased by 36%, while the market dropped by 19%in same period. We expect further expansion of about 12% in 2012, mostly inPoland and Romania. Taking into account the total number of DIY retail stores in the Central Europeanregion, the biggest number operates in Poland. The country has more DIY outlets than inall five other Central European states combined. “Poland is the leader by the number ofnew stores opened per year. However, the biggest percentage increase is observable inRomania, as it has almost doubled storecount in the last four years, despite economicturmoil. On the other hand, the Czech Republic witnessed just a 14% increase in sameperiod which was affected by both the crisis and also the long history of DIY retailers’presence in this country. The country where new entries almost stopped is Hungary dueto the unfavourable economic condition since 2008,” Jarosław Frontczak, a Retail Analystat PMR, says. Romania and Bulgaria, two least developed countries in Central Europe, witnesseddynamic expansion. Yet, after the introduction of the DIY format in Bulgaria in 2000,there was a steady growth in both the number of outlets and their selling area. The boomin the industry followed the high construction activity seen in 2004-2008. Since then, ithas slowed down and levelled on 43 stores last year. “In the last three years, after thebeginning of the crisis, expansion in Bulgaria has been just below the average for Central© Copyright PMR 1
European countries. Romania, however, witnessed the second largest expansion inCentral Europe, as the number of stores increased by 42%,” Jarosław Frontczak explains.The company that has expanded the most in the past two years is Dedeman, whichmanaged to overtake Praktiker and become a local market leader. Between 2000 and 2010 an average of 27 chain stores opened each year inPoland. Last year as many as 65 new stores were opened. “In the last three years, thenumber has increased by more than a half, which is the best result in Central Europe,”Jarosław Frontczak explains. Moreover, retailers’ plans for next few years involve furtherexpansion – at least 50 outlets in the current year. On the other hand, the expansion inthe Czech Republic will slow down. Although in the long-term perspective all currentplayers reveal expansion plans, they plan to open about 20 units in the next three years. Hungarian retailers developed steadily till 2008. Since then, most retailersstopped opening new outlets and the number of stores has increased only by 3% in lastthree years, which is the lowest growth in Central Europe. Moreover, the expansion tillthe end of 2014 will be limited due to the Act on the Formation and Protection of the BuiltEnvironment, the so-called shopping mall ban, under which the construction ofcommercial buildings with a floor area exceeding 300 m2 and the expansion of existingcommercial buildings over the floor area of 300 m2 is prohibited. The Slovak market expands dynamically. The number of stores has increased by31% since the world crisis erupted. Yet the market has been somehow avoided by thelargest international chains. Nevertheless, three new players chose Slovakia as an ideallocation for further expansion. First of all, Bauhaus is preparing to inaugurate its firsthypermarket, secondly Market Majster, from neighbouring Poland and thirdly AvexBaumarkt, which envisages space for its approximately 20-25 medium-sized outlets, allin medium-sized cities.This press release is based on information contained in the latest PMR reportentitled “DIY retail in Central Europe 2012. Market analysis and developmentforecasts for 2012-2014”.You are welcome to contact the authors of the report:Jarosław Frontczak, Retail Analysttel. /48/ 12 618 90 51e-mail: email@example.comDominika Kubacka, Retail Analysttel. /48/ 12 618 90 58e-mail: firstname.lastname@example.orgFor more information on the report please contact:Marketing Department:tel. /48/ 12 618 90 00e-mail: email@example.com© Copyright PMR 2
About PMRPMR (www.pmrcorporate.com) is a British-American company providing market informa-tion, advice and services to international businesses interested in Central and EasternEuropean countries as well as other emerging markets. PMRs key areas of operation in-clude business publications (through PMR Publications), consultancy (through PMR Con-sulting) and market research (through PMR Research). Being present on the market since1995, employing highly skilled staff, offering high international standards in projects andpublications, providing one of most frequently visited and top-ranked websites, PMR isone of the largest companies of its type in the region.PMRul. Dekerta 24, 30-703 Kraków, Polskatel. /48/ 12 618 90 00, fax /48/ 12 618 90 08www.pmrcorporate.com© Copyright PMR 3