DIY retailers gain market share

The highly fragmented Romanian DIY market went through a difficult period from 2010 to 2014, in which retailers tried to restructure or reposition themselves in the market. However, the two successive years, 2015 and 2016 brought consolidation and even business growth.
The Romanian DIY retail market is characterised by strong DIY chains. The seven largest retailers accounted for 45 per cent of the country's total DIY market value in 2015, according to retail research company PMR.
The remaining 55 per cent is divided among numerous sales channels: On the one hand the independent DIY stores and builders merchants; then the retailers in the  FMCG sector (fast moving consumer goods) with DIY departments; in addition, the online shops, either specialists or generalists with a range of DIY goods; and finally wholesalers and distributors, for example, importers.
These market divisions may shift in the next few years in favour of modern retailers extending the current share of 45 per cent, as a result of the next wave of expansion and consolidation, according to PMR. This time, however, it will be led by international retailers. Moreover, there are forecasts of a further consolidation of the market, which will result in a decline in the number of DIY players.Here is an overview of the current situation of the DIY retailers operating in the Romanian market:

The most important player in the Romanian DIY and home improvement retail sector is still Dedeman. This Romanian DIY chain, which supplies construction materials, home improvement and home and garden products, closed the year 2015 with a turnover of € 981.2 mio, an increase of 28 per cent in comparison with 2014. That was 20 per cent more than the company's own expectations.
In 2016, Dedeman broke through the € one bn revenue barrier for the first time. By the end of the year, the sales figures for 2016 are estimated to be more than € 1.2 bn. That means: Dedeman remains the market leader.
The retailer currently has 44 stores with a sales area of between 7 000 and 18 000 m² and more than 45 000 SKU available. It opened two stores in 2016 and the expansion process will continue in the next two years.
Dedeman plans for 2017 include the opening of at least four stores, in cities like Bucharest, Slobozia and Giurgiu. "After the inauguration at the beginning of next year, Baneasa store in Bucharest will be the most representative Dedeman store," Dragos Paval, president of Dedeman, already announced in 2016.
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