Praktiker will open more stores in Germany in 2009 than in foreign markets
Jan 05, 2010
For the first time in the decade, Germany’s second largest home improvement and DIY retailer, a subsidiary of the Metro Group, will expand more in Germany than outside : 6 stores will be opened this year and 3 only in Eastern Europe down from 12 annually before 2009.
German sales fell 0.4% in the first nine months of 2009 and 15% outside the homeland. In fact, economies of Eastern Europe have been highly impacted by the global crisis and the currency value of these markets has fallen. So far, except 2007 when it took over the Max Bahr retailer, Praktiker cut the number of the new stores opened each year in Germany regularly.
In the first 9 months, Praktiker, present in 8 countries of Eastern Europe and Luxemburg, drove 75% of its sales and 60% of its operating profit (€ 53.2 million) from Germany while it was the contrary in the same period of 2008.
For the year, the retailer plans a “modest” sales decline and a “reasonable” EBITDA. In fact, according to estimates by the HDE retail association, consumer spending in Germany will scale back by 2% in nominal terms.