DIEGO starts 2025 with optimistic plans

By: Trademagazin Date: 2025. 04. 14. 11:20

Increasing price sensitivity, an unpredictable regulatory environment and new shopping habits – DIEGO is building a long-term strategy amidst these factors. In an interview with Pénzcentrum, the marketing director of the Hungarian home improvement chain, Gábor Gesztesi, spoke about the challenges, opportunities and why he still believes in TV advertising and cinemas.

2024 – a year of stability, 2025 – the hope of growth

DIEGO closed a historic record year in 2022, partly thanks to state renovation subsidies. However, 2023 brought a significant decline, which the company calls its “year of sobriety”. The year 2024 brought stable growth, but did not fulfill the hopes of a recovery.

However, the company is optimistic about 2025 – thanks to SZÉP card purchases and rural home renovation subsidies. According to him, these could significantly boost the market, especially since DIEGO also has a strong presence in rural areas.

Challenges of rapidly changing regulations

For example, SZÉP card acceptance only became certain days before the launch, which was particularly difficult due to the franchise network. More than 100 separate contracts had to be concluded with banks. The same happened with the rural renovation program, when pensioners were included among the beneficiaries at the last minute – the entire marketing strategy had to be rewritten.

Pensioners have also become an important target group

The previously neglected older age group now represents a significant purchasing power: customers over 60 are actively innovating, and DIEGO brand awareness is particularly strong among those over 69.

Local presence: one of the keys to success

With 97 units, DIEGO covers practically the entire country – they have a specialty store close to almost every populated area within a 30-kilometer radius. This gives them a major competitive advantage over classic DIY chains, which are typically only present in large cities.