Market launch in Romania

Baumax inaugurated its first two Romanian DIY stores in early November 2006, one in Brasov with a population of approx. 320 000, and the other in Sibiu (approx. 175 000). Both outlets are 10 000 m² in size and both have been designed in accordance with the Four Worlds concept: Building (5 100 m²), Living (1 900 m²), Tools (700 m²) and Garden (1 900 m²). This concept has, however, been adapted to the conditions in Romania with particular reference to the low purchasing power that is the norm there. According to figures from GfK, price-adjusted purchasing power per inhabitant amounted to € 4 567. This compares with a figure of € 14 255 as the EU average.
Focus on building
The emphasis within the product assortment is on building and construction, where Baumax perceives that customers have a special need. Which is why almost half of the sales space is given over to investment building products such as bricks, blocks, tiles, doors and windows, and timber products.
Baumax claims to have had a number of new ideas when it comes to services in Romania. The emphasis is on the following: paint mixing facility, wood cutting/carpentry, delivery service, and the brandnew sewing service. As a consequence of the high level of need in Romania, a textile department was integrated into the store so that curtain and furnishing materials could be made available. Other services include a money-back guarantee, financing arrangements and a customer card for professionals. The latter is designed to ensure that genuine pros receive the best possible service.
Price guarantee and permanently low prices
Baumax intends to offer the best prices in Romania with its “Minus 10 per cent price guarantee”. If a customer spots a product offered by a competitor at a lower price, Baumax will sell him the same product at the lower price, and subtract a 10 per cent bonus as well. Baumax is aiming for price leadership in Romania, which is why it offers permanently low prices. It is a way of differentiating the retailer from the competition, and Baumax is giving expression to this difference through its overall market approach.
The architecture and fittings are unpretentious and functional, with the Four Worlds concept presented through colour and simple symbols.
Expansion of the store network
Baumax has big plans for Romania, which include opening five stores each year for the next few years. The company is aiming for market leadership in Romania by means of a nationwide network of stores.
But the Austrian…