Construction materials distributor Dedeman, controlled by businessmen Adrian and Dragos Paval, will expand the company's current network by around 3-4 stores each year and plans to reach 30 stores in the long run, from 11 at present.
Considering an average investment of 10 million euros per store, the total amount allocated for expansion could amount to around 190 million euros over the next few years.
According to the Bacau-based company's estimates, the DIY market will continue to grow until 2015, when saturation will be reached in terms of geographical coverage, but competition will increase in terms of improved concepts and offers.
"The company's investment plan entails expanding the current network by 3-4 stores a year, with the aim in the medium term to cover the Southern part of Romania, and in the long run to have 30 stores," said company officials. Dedeman opened a 9,700 square-metre store in Agigea, Constanta county last month following an around 10 million-euro investment.
The store is the first to open out of a series of four units planned for this year, with the next three openings to be made in Botosani, Bucharest and Buzau. Currently, the sales area of the 11 Dedeman stores amounts to 100,000 square metres.
"The next Dedeman store will be opened on August 14th in Botosani and will cover 7,800 square metres with 145 employees.
"In the meantime, works have also started on the Bucharest and Buzau stores," stated Dedeman representatives.
The overall amount allocated for investments this year stands at 47 million euros, 12 million more than the budget announced at the beginning of 2008. "20 million euros of the sum have already been invested in land, and 15 million euros in the construction of stores," explained company officials.
The funds for the investments come from a 45 million-euro credit secured from AB
