Home and Garden Specialist Retailers in Romania

PROSPECTS

Consumers are moving online

The physical outlets of home and garden specialist retailers in Romania tend to be huge, enabling them to offer consumers a very wide range of products. However, for many consumers, these large retail units are often a long way away.

Demand driven mostly by home improvement

As the number of new homes being built in Romania is not growing as fast as the economy, the sales growth of home and garden specialist retailers is being driven by home improvement products. Rising disposable incomes are enabling many consumers to invest in their homes and improve their general standard of living.

Gardening products increase in importance

As more Romanians move from apartment buildings to houses in the suburbs, the importance of gardening products has increased. Living in the suburbs often implies a desire for a small garden.

COMPETITIVE LANDSCAPE

Dedeman remains the clear channel leader

Dedeman remained the clear leader in home and garden specialist retailers in 2018. The company’s position can be attributed to a focus on expansion in areas with a high level of construction activity, a wide product range and penetration of most of the country, with it also having the third highest number of outlets.

Channel consolidation continues

Following its major acquisition in 2017, Kingfisher Group started in 2018 to transform the Praktiker chain, closing some units and turning others into Brico Dépôt stores. This process is being carried out quickly, with all of the company’s outlets in Romania set to operate as Brico Dépôt stores by early 2019.

Home and garden specialists participate in Black Friday

In 2018, all the major players in home and garden specialist retailing chose to participate in Black Friday. They offered thousands of products at discounted prices and successfully attracted a higher number of customers than usual in the second half of November.

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