Currency turbulence

In 2015, the DIY retail market in Central and Eastern Europe (CEE) saw an 11.7 per cent year-over-year decline in value terms. It fell for a second consecutive year and again the reason was fluctuations in currency exchange rates, namely the weakening of the Russian rouble and Ukrainian hryvnia, according to retail research company PMR. Included in this survey are Poland, Russia, Romania, the Czech Republic, Ukraine, Slovakia, Hungary and Kazakhstan.
However, in almost all of the countries of the region, market values increased in local currencies.
The total DIY market in the CEE - PMR did not only take into account the DIY retailers but also wholesalers - was affected to a large extent by the crises in Russia and Ukraine and as a result declined by as much as 14.3 per cent, year on year, in 2015 to € 53 bn.
The figures for 2016 are not yet available, but an increase for the total market, in particular the retailers, is expected. However, any turmoil in Russia or Ukraine might change the situation significantly.

According to PMR's observations, Russia accounted for over 40 per cent of the regional DIY retail market in 2015. Russia's share declined significantly due to the rouble's weakening, dropping in the last three years by 6 per cent points. Poland gained the most market share, reaching over 26 per cent as of 2015. Ukraine ranked third, but its share was only slightly larger than Romania's. The Bulgarian market is the smallest and this situation is not expected to change in the next few years.
The three largest players in the region are France-based Leroy Merlin (Groupe Adeo), UK-based Kingfisher (the owner of Castorama and Brico Dépôt) and Germany-based Obi. However, they are followed by local retailers currently present only in their respective country of origin: Romania-based Dedeman and Ukraine-based Epicentr. Interestingly, the largest player in terms of store numbers is Poland-based PSB Mrówka, which has 208 stores in its home country. Obi has the most widespread presence, with 143 stores in five countries in the region.
In Ukraine and Russia, chains hold about 20 per cent of the market. In Ukraine, this figure will not change significantly in the next few years as almost all expansion depends on the local market leader, Epicentr…