Praktiker Outperforms Market in 2024, Increases Sales and National Footprint

Bathroom

HUNGARY: In 2024, Praktiker maintained its strong, above-market growth trajectory by focusing on enhancing its customer value proposition, expanding its national footprint, and improving operational efficiency. Despite challenges in the broader economic environment that impacted the DIY market, the Hungarian-owned company increased its net retail sales revenue by 2.6%, reaching HUF 88.1 billion (US$ 250 million), while after-tax profit stood at HUF 519 million (US$1.4 million).

Praktiker’s strategic resilience was evident in its increased market share, rising to 31.8% from 31.4% in 2023, even as price sensitivity persisted across the DIY sector. Although real wages grew in 2024, the market remained cautious, influenced by inflation and delayed investment projects previously supported by government programs.

To adapt to these conditions, Praktiker introduced personalized promotions, refreshed its product assortment, and revamped its loyalty program. The company also executed key strategic investments, expanding its store network with the opening of a second location in Székesfehérvár. Additional stores in Debrecen and Veszprém are slated to open in 2025, bringing Praktiker’s total retail space close to 150,000 square meters. Operational efficiency was enhanced through simplified store processes, the launch of a digital office program, and the relocation of its headquarters to the new Liberty complex.

In 2024, the most in-demand product categories included gardening items, cold and warm tiles, sanitary ware, building materials, and lighting. The success of these categories was supported by targeted range updates based on customer preferences, particularly in tiles and sanitary products.

Praktiker also saw robust growth in online sales, which expanded at twice the rate of in-store sales. This surge was driven by continuous improvements to the online customer experience, including streamlined shopping processes, new payment and delivery options, and faster service times. As of March 2024, personal pickup times were reduced to just two hours, while from June, home deliveries were accelerated to within 24 hours, both contributing significantly to the company’s digital revenue growth.

Source: Praktiker