Losses Mount For Home Improvement Market In Decline In Hungary
- 5 Jul 2012 9:00 AM
The five largest home improvement chains in Hungary have lost 20% of their revenue in the past five years, according to data compiled by Napi Gazdasag. The combined revenues of OBI, Praktiker, BauMax, BricoStore and Bauhaus reached Ft 141 billion in 2008, but that figure has since fallen to Ft 115 billion by 2011.
Losses widened to Ft 14 billion in 2011 from Ft 8 billion in 2008.
BricoStore has suffered the biggest decline since the onset of the economic crisis, as annual sales plunged from Ft 24 billion to Ft 12 billion between 2008 and 2011.
Of the five big DIY chains, market leader OBI's position seems the most stable, based on the numbers, Napi Gazdasag notes.
Revenues rose from Ft 34 billion in 2008 to Ft 39 billion in 2011, after sales peaked at Ft 42 billion in 2009.
In addition to falling demand, the sector is reeling from losses from the special tax imposed on large retail chains.
Source: Hungary Around the Clock
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