Romanian do-it-yourself retailer Dedeman recently announced it will invest EUR 30 million for expanding its business to the neighboring Republic of Moldova. The company’s president and main shareholder Dragos Pavel made this announcement in a formal meeting which he had with Moldovan prime-minister Iurile Leanca, on Tuesday, May 27, according to a press release of the Moldovan Government.

Dedeman plans to open two stores in Chisinau, Moldova’s capital, which is a city of 800,000 people. Then it will expand to Balti, which is the second largest city in Moldova, with some 145,000 inhabitants. Dedeman will create 400 jobs in Moldova.

This is the first international expansion for the Romanian group which was founded in 1992 in the city of Bacau, which is located in the Moldova region of Romania. Dedeman currently has 37 stores in Romania and over 7,000 employees. The company’s sales surpassed the EUR 600 million threshold last year, which consolidates Dedeman’s position as the number one DIY retailer in Romania.

Its main competitors are foreign groups such as Kingfisher (Brico Depot), Leroy Merlin, Praktiker, Hornbach, Obi, but also local retailers, such as Arabesque and Ambient.

Andrei Chirileasa, andrei@romania-insider.com