Bricostore, the second biggest DIY store network domestically, generated 180m-euro sales in 2007, up 30% year-on-year, after it opened a new store in Pitesti, and exceeded initial estimates by 10m euros.
Last year, the company, which currently operates 8 stores (4 in Bucharest), forecast sales worth 170m euros by late 2007.
In 2008, the French company announced the strongest growth rate since it entered the Romanian market, and plans to open 4 stores with overall investments worth around 24m euros.
The network will open stores in Arad, Braila, Focsani, and Suceava and will target locations close to other large stores, such as hypermarkets.
In Suceava, the new Bricostore will be located within Iulius Mall retail park, close to Auchan, while in Arad and Braila the new stores will be located in Armonia shopping centres, where Carrefour also rents space.
In early 2007, the retailer earmarked an expansion rate of 3-5 stores per year, but real estate market prices have slowed down the company's countrywide expansion plans. Mr. Bricolage, its main competitor, also rescheduled two openings, initially planned for 2007, for the same reasons.
Bricostore is part of Bresson French retail group and entered the Romanian market in 2002, the same year Germany's Praktiker arrived on the Romanian DIY market.
The company's representatives in 2006 estimated they would reach 500m-euro sales around 2011, with around 30 operational stores. They are also considering further expansion in Bucharest.
At present, there are five international DIY networks on the domestic market, of which three - BauMax, Mr. Bricolage and Hornbach, entered Romania during the 2006-2007 period. Other important players on this market are Dedeman and Ambient Romanian, which have also announced future expansion.
Despite the real estate problems DIY retailers have encountered in their expansion, 2008 is set to be the year that registers the strongest growth rate for international chains since they entered the domestic market. According to estimates, overall investments will revolve around 200m euros this year, whilst around 2,000 new jobs will be created.
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