Romanian DIY retail. Market overview in 2015 and forcasts

Romanian DIY retail market have strong DIY chains and is the market where seven largest retailers accounted for 45% of the country’s total market value, according to retail research company PMR.

Romanian DIY retail market is dominated by romanian companies, the trident Dedeman – Arabesque – Ambient having together almost two-thirds of the entire DIY market from Romania.

Romanian DIY Retail - DedemanThe most important player from romanian DIY retail is still Dedeman, the romanian DIY chain with construction materials, home improvemet and home & garden products, which closed the previous year with a turnover of 767 millions €, with an increase of 26% comparing with 2014.

Dedeman currently has 42 stores with a sales area of between 7,000 and 18,000 square meters and more than 45,000 SKU available. Dedeman has opened 4 stores in 2015 and the expansion process will continue.

The second player in romanian DIY market is Arabesque, even if it is just starting to take the first steps in retail but is the largest player in the B2B market in Romania.

With a network of 18 warehouses across the country, the romanian company Arabesque sells over 30,000 items for the construction, finishes and furnishings. With a portfolio of over 15,000 customers in all the country, Arabesque services include deliveries to customers with their own logistics.

The 3th romanian DIY company – Ambient – have some problems, in 2015 it was opened insolvency proceedings in order to reorganize the company.

With a network of 14 stores concentrated mostly in North-Central zone of the country, Ambient company sells building materials, plumbing products and home decorations. Ambient has two business units: Retail – network of 14 commercial centers addressed to end customers (B2C) and Distribution – network sales to business customers (B2B).

DIY retailer Praktiker Romania celebrates this year 14 years of presence in the local market.

In Romania, Praktiker has established itself as the best known and most beloved brand among romanian consumers with a level of notoriety of 98%. The company currently has 28 stores in 24 cities. Praktiker Romania offer contains over 40,000 products, including: indoor and outdoor decorations, sanitary products, furniture, consumer electronics, gardening products and construction materials.

After taking over the Bricostore network, in 2013, by Kingfisher, Brico Dépôt Romania’s main priority was to transform the business after the model of Brico Depot. Thus, the 15 Bricostore stores were remodeled in just 18 months, after Brico Dépôt format which Kingfisher has applied for countries such as Spain or France. So, 15 Brico Depot stores in Romania, in this moment.

Brico Depot Romania management said that in 2016 will not open other stores and the main objective for this year is consolidation and focus on costumer services.

As we know, the french group Adeo – the LEROY MERLIN DIY retail brand operator – acquired the network of 15 bauMAX stores in Romania, in 2014. The development strategy of LEROY MERLIN in Romania included the transforming of bauMAX stores, in parallel with the construction of new stores.

Currently, in Romania, the retailer operates 9 stores LEROY MERLIN: 2 stores in Bucharest and 7 in the rest of the country.

Hornbach Romania, one of the main local retailers of building materials and gardening, has 6 stores in Romania and is still an important market for Hornbach Group, along with the other eight operating markets at this time.

Romanian DIY retail. Forecasts

Dedeman plans includes the opening of at least 6 stores in 2016 – 2017 period, in cities like: Bucharest, Satu Mare, Oradea, Slobozia and Giurgiu.

No store for Brico Depot in Romania, in 2016. The Brico Depot expansion will be continued in 2017, the main target being 50 Brico Depot stores in Romania. Brico Depot Romania plans to implement also a system of click & collect and after even one system with online order and home delivery. Brico Dépôt total investments in Romania, in the coming years, will exceed 200 million.

By the end of September 2016, LEROY MERLIN will convert all the remaining bauMax stores. Also, the retailer long term plans in Romania includes another 20 – 25 stores to be opened in the next 10 years.

In conclusion, the share of 45% of retail is expected to increase further in the next couple of years as a result of the next wave of expansion, according PMR. This time, however, it will be led by international retailers. Moreover, we forecast further consolidation of the market, which will result in a decline in the number of DIY players.

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