The 10 biggest players on the construction materials distribution market last year generated turnover worth above 1.8bn euros, up 40% from 2006, to which a further 200m euros are added in the form of turnover Arabesque and Romstal derived from foreign markets.
In other words, the top ten companies generated more than half the value of the entire construction materials market, put at around 3.5bn euros last year. The first positions in the ranking are held by domestic companies Arabesque (controlled by Virgil Cezar Rapotan), Romstal (held by Enrico Perini) and Ambient (controlled by Ioan Ciolan), closely followed Praktiker, the German DIY network boasting the fastest expansion pace domestically. As a matter of fact, Praktiker chose Romania as the centre of its international expansion.
The German firm has carried out the most aggressive expansion campaign domestically in the past six years, having got to 7 million customers in late 2007 from 91,000 customers in 2002. Average investments per store stand at 8-10m euros, with Praktiker investments thus due to reach some 40-50m euros at yearend.
The only new entry in the ranking is Austria's bauMax, which plans to develop a 30-store DIY network by late 2011, with 4 stores to be located in Bucharest. The company opened stores in other cities than Bucharest, where plots of land could be acquired more rapidly. BauMax in 2007 reached 60m-euro turnover and plans to double this figure this year amid a rising number of stores.
Domestic companies Arabesque, Dedeman and Ambient also announced strong expansion campaigns.
Thus, Arabesque will invest some 35m euros this year to open new shopping centres, while Dedeman will earmark a similar sum to build 4 new stores. Ambient wants to open around 12 shopping centres in the next two years, with investments to be worth around 130m euros.
Other foreign DIY networks too, such as Praktiker, bauMax, Mr. Bricolage or Hornbach plan to open 17-18 stores, with overall investments set to reach almost 200m euros and around 2,000 new jobs to be created.
Thus, all the necessary premises for an annual turnover increase of 40%, similar to that of last year, are created. The number of DIY stores affiliated to international networks will rise by 50%, with the weight of this segment due to rise in the overall market, from an estimated 30% in 2007. Thus, the number of such stores may reach 35, if retailers' plans materialise. However, their plans may be overturned by the high prices of land and the shortage of sales workforce.
This year, most DIY stores will be opened in Bucharest, with 3 stores scheduled for opening. Other targeted cities are Arad, Timisoara, Suceava. Bacau, Ploiesti and Deva.
Top ten
The 10 biggest players on the construction materials distribution market last year generated turnover worth above 1.8bn euros, up 40% from 2006
To this, a further 200m euros are added in the form of turnover Arabesque and Romstal derived from foreign markets
The top 10 companies generated more than half the value of the entire construction materials market
All the necessary premises for an annual turnover increase of 40%, similar to that of last year, are created
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