Praktiker sees sales plummet by 28.8% in Romania

Do-it-yourself retailer Praktiker saw its sales in Romania down 28.8 percent in the first half of the year, to EUR 68.7 million, as demand for do-it-yourself products has decreased. Sales in the second quarter of the year were down by 28.3 percent, to EUR 42.9 million. Praktiker, with 27 stores in Romania, saw sales dropping also after the VAT increased from the middle of 2010. “The first half of 2011 is therefore being compared to a period in which the former VAT rates were still in effect,” according to the group's most recent financial report. “Countries such as Greece and Romania were massively shaken by general economic and fiscal problems. As a result, private consumer spending – and with it demand for DIY products – diminished substantially. Moreover, there is no short-term improvement in sight,” the report goes on. Praktiker posted a loss of EUR 322.6 million in the first half of the year, internationally, an increase in loss compared to the loss of EUR 11.8 million in the first half of 2010. Most of this year's H1 loss was attributed to the second quarter of the year, with a loss of EUR 307.1 million, compared to a profit of EUR 25.8 million in the second quarter of 2010. Get the full financial report here. editor@romania-insider.com (photo source: Praktiker)