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The DIY sector is not escaping unscathed from the breakdown of the Russian building industry
House building in Russia is expected to fall by around one quarter this year. What is more, the population’s purchasing power is sinking drastically, so that the DIY sector must reckon with sales down by at least 30 per cent at the end of the year, according to a forecast from Rosbusinessconsulting.
According to this assessment, the Russian DIY retailers in particular are not seeing further growth but at best concentrating on maintaining their existing network of stores. More than 30 stores of nationally significant DIY chains in Russia were forced to close down in 2008 already. Only the international multiples like Leroy Merlin, Castorama, K-Rauta and Obi succeeded in expanding further in the first half of 2009, when they opened the occasional new store in Russia.
Infoline, a Russian information agency, estimates that the sector recorded sale of approx. US $ 23 bn in 2008.
According to this assessment, the Russian DIY retailers in particular are not seeing further growth but at best concentrating on maintaining their existing network of stores. More than 30 stores of nationally significant DIY chains in Russia were forced to close down in 2008 already. Only the international multiples like Leroy Merlin, Castorama, K-Rauta and Obi succeeded in expanding further in the first half of 2009, when they opened the occasional new store in Russia.
Infoline, a Russian information agency, estimates that the sector recorded sale of approx. US $ 23 bn in 2008.
