Fincl Crisis Delays Germany’s Obi Expansion Plan In Romania

Obi, part of Germany group Tengelmann, will open Thursday two stores in Romania’s western city of Arad and southern town of Pitesti, respectively, its local network reaching four units.

Mid-2008, the retailer announced to open 20 stores by the end of 2009, while in 2008's fall its representatives said the company will inaugurate only five units by end-2009.

Obi cannot keep the previously-announced expansion plan, as the economic situation was completely changed in the past year, and the real estate market declined, Quinzi said Wednesday in a press conference. "Thus, we must adjust to the new market conditions," he said.

However, the company’s long-term plans remain unchanged, as Obi intends to rank second on the Romanian do-it-yourself market in the next 5-6 years, and to attack afterwards the leadership position, Quinzi added.

In Romania, the first two Obi stores were opened in November 2008 in the capital city Bucharest and the western town of Oradea. The average investment in an Obi store is of EUR5 million, according to the German operator.

On the local DIY retail market, OBI rivals with Praktiker, Bricostore, Mr. Bricolage, Hornbach, Baumax, Dedeman and Ambient.

The German group Tengelmann also operates in Romania the Plus discount stores network.