German group Praktiker, which holds one of the most extensive chain of DIY stores on the Romanian market (27) and was leader of the DIY market until 2009, posted the biggest sales decline in the fourth quarter of last year, by 33%, with each store posting a daily average of 17,000 to 18,000 euros' worth of sales. The Germans recorded 40 million euros' worth of sales in the last three months of 2010, while full 2010 sales stood at 193.6 million-euro sales, down 22% on the preceding year.
Considered against the last quarter of 2008, when Praktiker posted 75 million euros' worth of sales, the figure recorded in fourth quarter of 2010 halved.
Officials of the German company blame the sales decline on VAT hike from 19% to 24% over the course of last year. "VAT was raised last year in Greece and Romania by 4% and 5% respectively. Similarly to what happened in Hungary a year before, these decisions led to a significant decline in demand, adding pressure on the gross profit margin," reveals the report of the German company.
German group Praktiker, which holds one of the most extensive chain of DIY stores on the Romanian market (27) and was leader of the DIY market until 2009, posted the biggest sales decline in the fourth quarter of last year, by 33%, with each store posting a daily average of 17,000 to 18,000 euros' worth of sales. The Germans recorded 40 million euros' worth of sales in the last three months of 2010, while full 2010 sales stood at 193.6 million-euro sales, down 22% on the preceding year.
Considered against the last quarter of 2008, when Praktiker posted 75 million euros' worth of sales, the figure recorded in fourth quarter of 2010 halved.
Officials of the German company blame the sales decline on VAT hike from 19% to 24% over the course of last year. "VAT was raised last year in Greece and Romania by 4% and 5% respectiv
