Mr. Bricolage, France”s number-three DIY chain worth 1.7bn euros, is to enter the Romanian market by opening its first store in Bucharest next year.
The company has already started recruiting on the Romanian market for a number of top positions for its first store.
When contacted by Ziarul Financiar, officials from Mr. Bricolage provided no details as to the expansion plan for the Romanian market. However, the company”s recently published annual report foresaw entrance on the Romanian market in 2006, after opening stores this year in Morocco (one store), Belgium (one) and Bulgaria (two).
Expanding outside France is part of the group”s policy to develop operations on markets with a high growth potential.
Mr. Bricolage”s first venture outside France was in some of the former French colonies. It subsequently grew through acquisitions and greenfield developments in countries such as Belgium (23 stores), Spain, Andorra, Bulgaria, Madagascar, Uruguay and Argentina.
Late last year the French chain had 571 stores (including its own stores and stores under franchise), of which 425 are under the Mr. Bricolage brand and 146 under the Catena brand.
The Romanian DIY market is currently being fought over by two major international players, Bricostore and Praktiker, followed by a number of domestic players with strong local representations, such as Dedeman in the eastern area of the country, Ambient Sibiu in central Romania, Tiger Amira Oradea in the west and Stelcati Constanta in the east.
Bricostore was the first international DIY player to enter the Romanian market.
Their first store opened in the spring of 2002 following the investment of 8m euros. It is located close to the Carrefour hypermarket in Bucharest”s Militari district.
The French group has also preferred commercial centres next to hypermarkets for their other stores on the domestic market – Cora Pantelimon (opened November 2003), Carrefour Orhideea (November 2004) and Carrefour Brasov (June 2005).
The company will open a second store in Ploiesti this year, and has plans to open two new stores next year.
Bricostore”s main rival in Romania is Praktiker, the DIY chain that is part of the German group Metro. Praktiker also opened its first store on the Romanian market in 2002, close to the Metro Cash & Carry in Voluntari on the edge of Bucharest. Since then the German giant”s DIY chain has opened new stores at a rate of three each year, having set itself the target of around 15 stores.