Praktiker Romania's decline continues: sales drop 11.2 percent in Q1 2012

Praktiker Romania’s sales in the first quarter of this year amounted to EUR 32.1 million down 10.6 percent (-11.2 percent like-for-like). The German DIY retailer’s sales on the local market have been on downward trend since 2008. In the first quarter of this year, Praktiker’s sales outside Germany went down 12.1 percent y-o-y, totaling EUR 155.2 million.

“This reflects the persistently weak demand in large parts of our international portfolio. Besides Greece, business also receded in Bulgaria, Romania, Turkey and Hungary. In Luxembourg and Poland, sales in local currency came in at the prior-year level. Only the Ukraine reported growing sales for the first quarter,” reads the company’s latest report.

The Praktiker Group operates – including Max Bahr – around 440 home improvement and DIY centers in nine countries. About 110 stores are outside Germany, 27 of which are located inRomania, its largest external market. The retailer also has operations in Luxembourg, Greece, Poland, Hungary, Turkey, Bulgaria, Ukraine and Albania.

In light of poor results abroad, Praktiker’s main shareholder, Maseltov, wants the company to close its operations in Eastern Europe, according to information published by Financial Times Deutschland (FTD) last month.

A general divestment is not on the agenda of Praktiker’s management board, said Thomas Fox, CEO of Praktiker AG, adding that a differentiated view should be taken with regard to the international business activities.

In the Q1 2012, the Praktiker Group generated sales of EUR 663 million similar to the level of the year-earlier period (EUR 666.4 million). InGermany, the company succeeded in increasing sales again by 3.7 percent to EUR 507.8 million for the fist time after nine quarters of continued decline.

Simona Bazavan