AUSTRIA/E EUROPE: BAUMAX EXPANDING

Article Abstract:

Baumax is to invest Sch 1bn in opening up new outlets in the next three years. The number of outlets is to be raised by 29 from 115 at present. Two of the new outlets will be in Austria, while 20 to 24 existing Austrian outlets are to be expanded into megastores. Most of the new outlets will be set up in the five east and southeast European countries in which the company is already present . Baumax is to double turnover by 2005-06. In 2002 the growth of profits should be steeper than that of sales. In year 2000 turnover grew 10.6% to Sch 10.4bn.

New capacity, new plant construction, Capital expenditures, Eastern Europe, Western Europe

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AUSTRIA: BAUMAX BETS ON EASTERN EUROPE

Article Abstract:

Austrian DIY chain Baumax aims to double its turnover to Sch 20bn in five years' time. Most of this growth is to be generated in eastern Europe, where a strong DIY tradition goes back to the communist era, but the need to catch up is still high. In five years, Baumax wants to be the leading DIY chain in the Czech Republic, Slovakia, Hungary, Slovenia and Croatia. Moreover, Baumax is planning to become active in Romania, Bulgaria and, depending on the political situation, Serbia. On the other hand, Baumax gave up plans for Poland a market which is already divided between German and French companies, and is not interested in the Baltic countries.

Strategy & planning

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bauMax vor Kooperation

Article Abstract:

BauMax chairman Karlheinz Essl said that Austria's biggest DIY group is in talks with a French, a British and a Dutch DIY chain about cooperation in purchasing. The Austrian company entered purchasing cooperation with German Globus in 1996. Mr Essl rejected rumours according to which the German trade giant Metro is to take over BauMax. On the contrary, BauMax is interested in taking over outlets from its competitors. Mr Essl suggests that Hornbach, Metro and Praktiker might sooner or later want to withdraw from the Austrian market due to Austria's new stringent regulations on the building of big retail outlets.

Comment:

Do-it-yourself building materials retailer is in talks with French, British & Dutch DIY chain over purchasing cooperation

Strategic alliances, Baumax Vertriebsgesellschaft mbH, Article

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