For the sixth year in a row, in 2012 the number of outlet closures in the Germany home improvement stores market was higher than the number of openings in Germany, whilst during the same period the average sales area saw a constant increase. This makes it clear that the trend towards larger outlets continued. On the one hand, this is because larger stores are able to offer a wider product range to customers, and thus are able to cater to every conceivable need and wish they might have. On the other hand, it is also because smaller outlets are more often unprofitable, and therefore have to close, at least in the long run.
Home improvement and gardening stores is a comparatively consolidated channel in retailing, with The Tengelmann Group and Bauhaus commanding double-digit value shares in 2012. Also, another five companies (Praktiker Bau & Heimwerkermärkte Holding, Toom Baumarkt, Hornbach Baumarkt and ZEUS Zentrale für Einkauf & Service and Globus Holding) held shares of more than 5%.
Home improvement and gardening stores in Germany continues to be dominated by national retailers. The channel is already saturated, with many German retailers trying to expand internationally in an attempt to increase their value sales. For international players to enter this channel in Germany they would have to offer even lower prices than their German counterparts, and manage to secure good locations with a high population density.
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