Home improvement sales decline despite lockdown
Praktiker had net sales of HUF 67.88 billion in Hungry in 2019, up 18% from HUF 57.1 bn a year earlier. Sales were driven by the bathroom fixtures, gardening, construction materials and tiles categories, while growth was fastest in tiling and flooring, Karl-Heinz Keth, managing director of Praktiker Kft., said.
Praktiker’s customers are increasingly focusing on quality products of medium and higher price categories, which is why the company is also increasing emphasis on this segment, the director said.
Praktiker’s webshop, which currently offers more than 30,000 products with delivery, also did well last year as it contributed nearly 10% of all sales. Online sales reflect growth trends in brick and mortar stores, with customers typically buying home improvement and renovation materials, furniture, bathroom fixtures and fittings and lighting fixtures, but outdoor furniture and all leisure products in general also sold well, the company said.
Praktiker was forced to revise its plans for 2020 as the coronavirus pandemic decreased sales substantially, management said.
Praktiker has not laid off workers and is continuing with its store renovation programme started in 2017, the statement said. Nevertheless, movement restrictions in March and April affected sales heavily, even though people clearly had an increased propensity to home and garden improvement work in this period. Praktiker hopes there will be no second wave and it can resume pre-pandemic growth, the company said.
Praktiker has 20 stores in Hungary with a combined floor space of 130,000 sqm and employs nearly 1,600 people. With its 33% share of the DIY market, estimated at HUF 190 billion annually, it remains the second biggest market player. Praktiker has 340 suppliers, more than 80% of whom are Hungarian.
Cover photo: Getty Images
