Praktiker Hungary announced that is investing heavily in modernizing the all 20 stores around the country over the next five years. The Hungarian DIY stores chain Praktiker was taken over by Wallis Group in 2016, following the insolvency of the german parent in 2013.
In response to domestic demand growth, Praktiker Hungary reconsidered its business units: it unified its range of stores and emphasized the decor and furnishing product range at the all 20 DIY stores. Renovation of small-sized department stores and new shelving systems and spectacular showrooms aimed at increasing the customer experience, which makes Praktiker expecting a clear increase in sales.
Two-digit growth this year
„In addition to the basic variety, there is a need for novelties, but we are still focusing on DIY items and home furnishing products. Customers are choosing more and more value-added and higher price products,” said László Bagaméri, Sales Director of Praktiker. He added:”Our company is also expecting a growth rate similar to previous years. Last year, we achieved a 20% growth, probably two-digit growth this year.
Praktiker’s modernization program began in the small-scale DIY stores (4.800 – 6.000 sqm). After stores from Esztergom, Zalaegerszeg and Kaposvár, in mid-September, reconstruction was completed in Nyíregyháza. To be able to show the basic selection range, Praktiker has started renovating in the smallest format units. Modernization will continue in the near future. Praktiker has unified in the stores not only the stock but also the image.
Praktiker clearly seeks to increase customer satisfaction and thus awaits sales growth. First experience confirms Praktiker’s expectations: where modernization has taken place, the turnover of the store has clearly increased. By 2023, the DIY retailer wants to capture all of its stores so that more and more experiences can be made of shopping for increasingly demanding domestic consumers. This means a total sales area of approximately 130,000 square meters.
Praktiker is a leading DIY chain in Hungary that employs more than 1,500 people. In 1998, he opened his first store, currently operates 20 DIY retail units and in his webshop there are over 30,000 articles available. The revenues of local DIY stores operating under the Praktiker brand rose by 22% to HUF 47.8 billion (1.47 billions euro) in 2017. The company, majority owned by the Wallis Group, targets 10% revenue growth in 2018.
This article is part of the CEE DIY retail category from www.bricoretail.ro B2B publication and bring together news, in english, from Central and East Europe related with DIY and home improvement retail.
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