BUSINESS

Dedeman, top DIY retailer

Dedeman, the DIY retailer controlled by Romanian entrepreneurs Dragos and Adrian Paval, is forecasting a turnover of RON 4.53 bln (EUR 1.01 bln) this year, according to zf.ro. If the figure is attained, the Romanian company will become the first 100 percent Romanian-owned DIY retailer that surpasses the psychological threshold of EUR 1 bln, according to data included in a questionnaire for the ‘Top economic players” yearbook. At the same time, Dedeman has the biggest market share on the DIY sector.

Last year, Dedeman was the fifth largest player in Central and Eastern Europe, sales wise, according to a report authored by Poland’s PMR market research company. Leroy Merlin, Kingfisher and OBI topped the rankings, according to the report.

The total value of the regional DIY market was estimated at EUR 59 bln last year, Dedeman having a market share of 1.2 percent, so that the company’s turnover was estimated at over EUR 700 M. While Dedeman is active only in Romania, each of the other top three chains is present in at least three regional countries. The fourth position is held by Ukraine’s EpiCentr, with sales estimated at EUR 1.1 bln in 2014.

The local DIY market (retail alone, without distribution) stood at around RON 9.7 bln (EUR 2.2 bln) last year, up by 2.9 percent according to PMR analysts, who estimate a growth of 6.2 percent this year.

Dedeman tops the rankings of companies led by Romanian entrepreneurs, with a turnover of RON 4.36 bln, followed by Tinmar-Ind, led by Augustin Oancea, with RON 3.3 bln, and by RCS-RDS, with a turnover of RON 2.7 bln last year.

Dragos Paval (50) was the first of the two brothers to go into business, opening a 16-square metres store in Bacau in 1992. The business started to grow and the Paval brothers are today the strongest Romanian entrepreneurs based on their company’s turnover. The Dedeman network is the incontestable leader of the DIY market, competing against international networks (Brico Depot and Leroy Merlin) as well as companies with Romanian shareholders (Ambient – insolvent – and Arabesque).

 

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