Half of DIY retailers' expansion projects have remained on paperthis year as the market has contracted by as much as 25%.
DIY retailers, which have experienced falling demand for thefirst time this year, have adjusted their short-term expansionplans to preserve their cash. Only 11 of the 23 new storesannounced initially were opened this year, in the wake of totalinvestments worth 107m euros.
However, these retailers are late to resort to store networkresizing, a move several food retailers have made this year.
"Shrinking consumption, constructions market turmoil and thereal estate freeze have led, for the first time since this tradesegment emerged in Romania, to a market decline that could top 25%overall in 2009," explained Monica Hodor, interim general managerof Praktiker Romania, the biggest player on the market.
She also specified the reassessment of new investment projectswas a strategy retailers use to protect their cash reserves and itmay allow companies to resume expansion after the economyrebounds.
"(...) Increases are now coming only from the home décor segmentand gardening," stated Alexander Frech, general manager of BauMaxRomania.
Praktiker has significantly slowed down expansion this year onall the markets it operates on. French Bricostore has also adjustedplans this year. Both Praktiker, and Bricostore have this yearadded smaller stores than the network average.
In turn, Mr. Bricolage, the French network operated domesticallythrough a franchise by the owner of Arabesque, Cezar Ropotan, hasopened its first small store this year.
Dedeman Romanian company, owned by Adrian and Dragos Pavalbrothers of Bacau, has this year surprised the market with itsexpansion pace: the network has entered Bucharest and finalised allthe four new projects announced in early 2009, following 25m-euroinvestments.
The newest retailer on the market, Obi, will end 2009 with fouroperational stores, from the 11 it had previously announced.
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