Slovakia’s DIY retail scene undergoing renaissance

The situation in the DIY retail market is currently going through a new stage in its evolution, following the news that the Austrian chain bauMax will be pulling out of Slovakia due to alleged financial problems. This was reported in the Hospodárske Noviny daily on Tuesday, with the paper comparing the market's current situation to that seen twenty years ago. bauMax was the first such store to come to Slovakia in the early 1990s. Back then, the construction material market in Slovakia was unconsolidated and made up of small retailers selling construction materials and small ironmongers. bauMax took advantage of the situation and thrived, however in 2004 it had to learn to compete, following the arrival of the German DIY chain Hornbach. This appeared to be no problem with a booming real estate market. The situation has since changed, with the market now recuperating after the recession and competition slowly increasing. The latest addition to the DIY retail market is Bauhaus, which is set to open its first ever store in Slovakia tomorrow (Thursday, June 4) at Bratislava's Pharos shopping centre. Another DIY store, focusing mainly on outdoor and garden supplies is Mountfield. The void left by bauMax's departure is expected to be filled by German retail chain Obi, however. Meanwhile, there are still many local-based small retailers, including those who sell gardening equipment alongside construction materials. The paper states that the changes are just enough for the market to absorb. "I don't think that we're about to witness a price war, though", said Home Credit analyst Michal Kozub, adding that retail chains will most probably focus on improving communication with customers.