A severe decline in the business performance of large DIY stores in 2023

By: Trademagazin Date: 2024. 06. 03. 11:51

In 2023, major hardware store chains in Hungary faced significant financial challenges, marked by substantial declines in profits and revenue across the industry.

Obi reported the least severe decline, with a 20% decrease in taxable income to 13.6 billion HUF, down from 17.1 billion HUF the previous year. Despite this, Obi’s net revenue also fell by 13%, from 170.4 billion HUF to 147.8 billion HUF. Praktiker and Bauhaus experienced even more dramatic downturns. Praktiker’s net revenue decreased by 10% to 85.9 billion HUF, and its taxable income plummeted by 79% to 1.4 billion HUF. Bauhaus faced an 18% revenue drop to 36 billion HUF, with taxable income reducing drastically to 288.5 million HUF, merely 9% of the previous year’s figures.

Additionally, all three chains saw a reduction in employee numbers, albeit the wage costs rose. The average salary across these chains exceeded 500,000 HUF, with Bauhaus employees earning the most at an average of 638,225 HUF monthly. Despite fewer staff, the higher wage costs reflect increased salary pressures within the sector. This period of economic strain highlights the broader challenges facing retail sectors during economic downturns, as companies struggle to balance cost management with maintaining workforce morale and competitiveness in the market.