Obi quitting Ukraine

Obi is planning its departure from Ukraine in 2014. This emerges from a report on diysale.ru, a Russian industry portal. The reason given for this is that the three stores at Charkow, Odessa and Mariupol have not been financially successful over the past six years. It is not that long since Obi declared its intention to build up its network of stores in Ukraine to a total of 20 over the next five years. So now, after Praktiker, yet another international retailer is saying “Do pobatshennya Ukrajina!” – “Goodbye Ukraine”. The only one left in the country for the time being will be Leroy Merlin with its two stores. Industry experts believe that the grounds for Obi’s exit lie above all in the high financial risks involved and the consumer habits of Ukrainian DIY customers. They seem to have a preference for local suppliers, and especially for market leader Epicentr. And this dominant player has built up a solid base, with as many as 42 stores and a total sales area of a million square metres.