German do-it-yourself retailer Obi is preparing to withdraw from the Romanian market this year, after recording losses every year starting 2008, when it opened its first local store, sources from the market told local news agency Mediafax.

“The decline in the population’s buying power in recent years and the fact that fewer houses were built affected the activity of DYI retailers. For this reason, Obi is preparing to withdraw this year from the Romanian market,” according to sources from the market, quoted by the newswire.

However, Obi representatives said that they are not considering “for the moment” an exit from Romania, reports Mediafax.

Obi opened the first store in Romania in 2008. In the next two years, the company opened six other units in Bucharest, Arad, Pitesti, Ploiesti and Sibiu.

At the end of 2012, the company had 636 employees and losses of over RON 56 million - or some EUR 12.4 million .

The DIY market in Romania has recently seen changes. British Kingfisher bought the 15 Bricostore units in Romania in April 2013. Earlier this March, Kingfisher has opened the first two stores re-branded as Brico Depot in Romania.

Also, in February this year, DIY retailer Praktiker announced that it sold its 27-store chain in Romania and its brand locally to Turkish investor Omer Susli, who controls the distribution business Search Chemicals.

Irina Popescu, irina.popescu@romania-insider.com

(photo source: obi.ro)