During the pandemic, home became the people's center of life, then came a construction boom and inflation. All of this translated into active shopping in Do It Yourself (DIY) stores. The total sales of Bulgaria's top 5 retailers - Praktiker, Mr. Bricolage, Angro Trade, Home Max and Gospodinovi Stroymarket - approached 880 million levs (450 million euro) in 2022, increasing by an average of 25% year-on-year, and profits jumped by almost 50%. Projections for 2023 are positive, with major chains expecting new double-digit growth rates.
Big stores preferred
Over 62% of Bulgarians prefer shopping for non-food items in large stores and chains, about 16% in small corner-shops, around 12% are in favor of online shopping while only 8% choose malls, according to a survey conducted by local polling agency Market Links in June 2023. Chains are favored by most consumers for purchasing large furniture (58%) and building materials (54%), as well as small home furnishings (49%) and household and garden goods (48%). The main reasons for choosing a place to shop include the variety of products and brands (over 50% of all buyers), prices, the overall experience, the service and the possibility to consult the seller.
Leader Praktiker
Praktiker Retail tops the list of DIY stores again with 348 million levs in sales in 2022, which represents growth of over 25%, year on year. The German chain settled in Bulgaria in 2004 and opened 9 stores in the next ten years. In 2014, Bulgarian-owned Videolux Holding, which is known for its Technopolis chain for household appliances, acquired the entire business of the German company in Bulgaria and now runs 16 Praktiker hypermarkets in the country. The latest two were opened in 2023 in the cities of Pernik and Haskovo, and two more are currently under construction in Sofia. Praktiker also has an online store.
"In 2023, we expect a 20% increase in revenue and a 10% increase in the number of visitors. The share of online sales is still not large, but it is growing," Praktiker senior manager Adrian Penkov told the Capital Weekly.
Mr. Bricolage keeps growing
Doverie Brico is second in the ranking, with a 30% rise in revenue in 2022, to 151 million levs. The company operates Mr. Bricolage stores under an agreement with the French chain. There are 13 physical stores under the Mr. Bricolage brand in 10 cities, as well as an online store. "The Bulgarian chain is the second largest international partner of Mr. Bricolage SA after Belgium", CEO Trayan Haladzhov told the Capital Weekly.
The company expects a 17% increase in sales in 2023 compared to 2022. "Inflation was lower in 2023, so the expectations are mainly due to the growth in the number of customers by 13%. Online sales have a relatively small share in our industry due to the nature of the goods and services sold. On the other hand, these are the most dynamically growing sales - by 27% in 2023. We believe there is significant potential for development of e-commerce," Haladzhov said. In 2024, Doverie Brico expects around 15% sales growth.
Angro Trade: trade and production
Angro Trade's revenue surpassed 133 million levs in 2022, up 23% year on year, which gave the company the third place in the ranking. Angro Trade maintains large warehouse stocks of more than 20,000 items across various categories, such as thermal insulation, construction materials, roofing, paints, bathroom equipment, power tools, etc. The company has commercial and warehouse space exceeding 26,000 sq. m in Sofia, along with a large fleet of vehicles and a logistics department.
In 2023 the company launched Angro Ceramica, a specialized store for design and sale of bathroom equipment. "We partner with leading manufacturers and importers in the industry and we also make our own imports, which we hope to consolidate and expand," co-owner Petar Petrov told the Capital Weekly.
In 2024 the company plans to boost its online presence. "We are also considering building new stores and warehouse space on land we have already purchased," the other co-owner, Lyudmil Hirstov, added.
Home Max growing too
Baumax Bulgaria is the company behind the Home Max chain, which ranks 4th with over 130 million levs in revenues in 2022. The company is part of Bulgaria's Chimimport Group, which acquired Baumax's business from the Austrian owner in 2014. Today Baumax Bulgaria operates eight Home Max hypermarkets in seven cities.
"Last year was extremely dynamic and challenging. In the first half of 2023, we achieved the projected revenue growth of 6.5%. We also observed a similar increase in the number of visitors. In the second half, the trends reversed, consumption slowed down, and customers became cautious in planning their purchases. We expect 2023 results to be close to those of 2022," the company told the Capital Weekly.
In 2024, Baumax Bulgaria plans a 2.5% increase in sales revenue. Corporate investments will also be adjusted to the current economic situation.
GS Stroymarket with a new outlet in Plovdiv
Gospodinovi Stroymarket ranks fifth with sales exceeding 114 million levs in 2022, up 29% year on year. The company was set up 30 years ago by the Gospodinov brothers Diyan and Galin as a wholesaler of construction and furniture materials. Today it operates six retail outlets under the GS Stroymarket brand offering over 60,000 products, as well as an online store.
"Over the last 10 years, we have focused on retail trade, emphasizing on quality consultation and additional services," Diyan Gospodinov told the Capital Weekly. In October 2023, Gospodinovi Stroymarket started the construction of its largest facility in Plovdiv. It will cover an area of 1.4 hectares, offering a wide range of products and a selection of over 80,000 items. The investment exceeds 20 million levs.
Diyan Gospodinov expects the company to maintain its growth trend in 2023, "despite the decrease in prices of some key materials, high inflation levels, and other negative economic factors. "In online trading, we have consistently registered over 100% growth annually over the past four years, and 2023 is no exception. We are actively developing this channel, and its importance is increasing every day," he added.
During the pandemic, home became the people's center of life, then came a construction boom and inflation. All of this translated into active shopping in Do It Yourself (DIY) stores. The total sales of Bulgaria's top 5 retailers - Praktiker, Mr. Bricolage, Angro Trade, Home Max and Gospodinovi Stroymarket - approached 880 million levs (450 million euro) in 2022, increasing by an average of 25% year-on-year, and profits jumped by almost 50%. Projections for 2023 are positive, with major chains expecting new double-digit growth rates.
