Do-it-yourself companies to keep on developing

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The Romanian building materials distributors and do-it-yourself chains will continue to score high turnover, during the coming five years, as the store chains and consumption will expand, while the sales are to register a stagnation period. Some market players expect a 7-year rise in the do-it-yourself sector, till the stagnation time.
 
The do-it-yourself players registered sales up by round 20-30% in H1, 2008, because of the real estate projects started in the previous years and continued in the first half of the year. The building materials market, do-it-yourself retail included posted 3.5 billion euros in 2007.
 
Praktiker store chain, ‘No. One’ on the Romanian do-it-yourself market, reported sales by 18.5% on half year basis, whereas the French Bricostore, the second big do-it-yourself retailer earned by 30% higher sales in H1 of 2008 than over the same time span in 2007. Arabesque the most important local building materials distributor posted sales by 20% higher in the first half of the year than in H1, 2007, while Dedemann Company’s sales grew by round 25%.
 
Bricostore, whose chain currently numbers 9 stores, four of them in Bucharest, plans to open more four stores by the end of the year, after having invested 50 million euros, and the Company’s turnover could exceed 230 million euros in Romania, this year. Dedeman Company of Bacau (east), currently owning 12 stores, plans to open 34 new stores every year and reach 30 shopping centers in the long run. As the average investment in a store attains 10 million euros, whilst the total investments in the chain’s enlargement is expected to reach about 190 million euros, the source says on.
 
The fierce competition on the Romanian market will bring this year a peak enlargement in the Romanian do-it-yourself retail by 17-18 new stores and investments worth almost 200 million euros.
This is expected to increase in the number do-it-yourself stores by round 50% and in the weight of the do-it-yourself retail on the building materials distribution market, along ith the opening of more 7-8 new Dedeman and Ambient local stores.
 
International chains such as BauMix, Mr. Bricolage and Hornbach entered the Romanian market during the last two years. Moreover, Obi chain belonging to the German Tengelmann Group is expected to open its first two stores in Romania, one of them in Bucharest, this year.
Arabesque, a building material distributor expects the consumption to slow down because of the turbulences on the real estate market, starting 2009. Real estate transactions dwindled in the H1of the year as against the same period last year, on the background of the international financial crisis and tougher loan granting terms.
 
Arabesque owns branches in Ukraine, Serbia, Bulgaria and the Republic of Moldova and expects its turnover to attain round 560 million euros. It earned about 100 million euros on the foreign markets, in 2007 and plans investments worth about 45-50 million euros in the enlargement of the store chain in Romania and in the region, a level similar to that last year, and to consolidate its logistic park.
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