The Dedeman group, operating a chain of stores and warehouses for construction and home decor materials in the eastern region of Romania, foresees turnover for the current year totalling 70 million euros, 62% higher year-on-year.
"This year, we''ve added another five stores to our network, in Braila, Iasi, Bacau, Vaslui and Onesti, through which we''ve expanded our retail space by 25-30%," Dragos Paval, general manager of Dedeman store chain, told Ziarul Financiar.
The company, owned by businessmen Dragos and Adrian Paval, is among the few national networks of construction supplies stores to rival the major international players in the domain present in Romania, such as Praktiker or Bricostore.
The Moldovan group acquired a plot of land in the south of Bucharest, where it will construct a new hypermarket next year.
"We will invest about five million euros in the Bucharest store, which is part of our group expansion strategy," says Paval.
Dedeman has recently opened a hypermarket in Braila, with an area of 7,500 square metres, following investments standing at 4 million euros. This year, too, the company opened a hypermarket in Vaslui, with an area of 5,800 square metres, displaying more than 40,000 products.
"Since the red tape in Bucharest did not allow us to initiate works sooner, we invested 1.8 million euros in a pilot-store in Onesti, which we will inaugurate on December 1st," specifies Paval. The stores are similar to DIY stores in terms of their concept. By opening such outlets, the group is trying to obtain a solid position on the market, against a background in which the growth of the major international networks is expected over the coming years.
Beside the five stores it opened this year, the company owns another 20, covering areas ranging between 1,800 and 5,000 square metres, located in cities such as Comanesti, Onesti, Roman, Suceava, Bacau and Iasi.
Other Romanian store networks with a regional presence are Ambient Sibiu, Grony and Midway Craiova and Givada Bucharest, Stelcati Constanta, as well as Tiger Amira Oradea, all boasting turnovers worth tens of millions of euros. The total investments Dedeman has budgeted for this year amounted, according to the company''s representatives, to about 11-12 million euros.
At present, the Romanian market contains two international DIY store networks, the German Praktiker and the French Bricostore, which have noticed the high potential of the Romanian market, given its 22 million inhabitants and, implicitly, the high demand for houses and home furnishings.
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