Praktiker is testing a new store format

Nobody could escape the effects of the continuing economic recession. The DIY channel has also been suffering: sales have dropped and the number of buyers has decreased since 2009. On average, Hungarians now only spend HUF 5,000 per month (source: GfK) on making their houses and flats prettier – we learned from Karl-Heinz Keth, managing director of Praktiker Kft. There is also reason for optimism though: this March the German parent company injected EUR 7 million into the Hungarian Praktiker network. This year Praktiker stores are being refurbished, in order to make the sales areas more transparent and shopper-friendly. In Praktiker’s August catalogue a 3-tier price system debuted: ‘economical prices’ are indicated in yellow, ‘with our recommendation’ prices are in green and indicate products with a good price-value ratio, while ‘quality in your home’ prices are marked with blue and are used for premium products. The number of private label products keeps growing, Budget goods are characterised by favourable prices and German quality, while the Praktiker brand lures shoppers with an excellent price-value ratio. Praktiker employs six key account managers, who deal with professional and big buyers on a regional level. In the last period the company’s web store increased sales by 30 percent. At the end of the year Praktiker will open two mini-stores, the new format will debut near Budapest and in eastern Hungary. If results are positive, the new store type might appear in other countries too.
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