Hornbach to open store in Timisoara this summer

Newsroom 05/06/2012 | 12:09

German DIY retailer Hornbach has begun work on its fifth local store which should be opened this summer inTimisoara. The shop will have a sales surface of 22,500 sqm and requires a EUR 30 million investment.

Hornbach entered the local market in 2007 and has since opened four local branches inBucharest(three outlets) andBrasov. The retailer’s last local opening was in December 2010.

The Romanian DIY market has been shrinking in recent years as real estate investments have plummeted. The market is one of the most competitive at local level but, even so, Horbanch managed to increase its business in 2011 against the previous year, Mugurel-Horia Rusu, general director of HornbachRomania, told BR, without disclosing the actual figure. Hornbach posted a turnover of about EUR 71 million in 2010, according to data from the Ministry of Finance.

Moreover, in the first financial quarter of this year (March-May) the retailer says it reported positive results.

Other international players on the local DIY market are Praktiker, Bricostore, BauMax, Obi and Leroy Merlin. Local retailers include Dedeman, Arabesque and Ambient.

Investment in new DIY units considerably decreased last year with only eight new large stores being opened. Out of this figure, five outlets belong to market leader Dedeman, which is owned by local businessmen Dragos and Adrian Paval. The other three were opened by French Bricostore, Austrian BauMax and French newcomer Leroy Merlin.

One of the worst affected players by the decrease of the market over the past few years has been Praktiker which saw sales go down by 24 percent in the first nine months of 2011. The German DIY retailer’s sales on the local market have been sliding since 2008.

Simona Bazavan

Simona Bazavan

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