Record sales for Praktiker in 2017
Revenues of local do-it-yourself stores operating under the Praktiker brand rose by 22% to HUF 47.8 billion last year, Managing Director Karl-Heinz Keth said on Monday. The company, majority owned by the Wallis Group, targets 10% revenue growth this year, he added.
Praktikerʼs market share rose to 33.1% in 2017, up from 30.9% in the previous year. The share of online sales rose to 6% by 2017, from 1.4% in 2014, and further growth is expected in 2018. The number of visitors to Praktiker stores who made purchases increased by 15% to about 5 million.
Pre-tax profit climbed to HUF 1.7 bln, from HUF 500 mln in 2016, and this year the firm targets pre-tax profit over HUF 2 bln, Keth said. Praktiker has 20 stores in Hungary, employing 1,500 workers. About 70-80% of the retailerʼs suppliers are Hungarian and the company wishes to increase their number.
Although Praktiker wants to open more stores, finding good locations is a "big challenge," Keth observed. Because of legislation prohibiting the construction of big-box stores and shopping malls, Praktiker is considering opening up smaller units, he added.
Praktiker has not excluded a possible expansion abroad, but first wants to reinforce its market position in Hungary, Keth explained. Wallis Group acquired a majority stake in Praktiker in 2016, while Keth is a minority owner.
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