Hornbach, a leading home improvement retailer, is shifting its strategic focus towards international expansion for new store openings. According to Albrecht Hornbach, CEO and shareholder, the company sees greater potential for growth in markets outside of Germany.
“While opportunities for new locations in Germany still exist, the majority of our future store openings will likely occur abroad” Hornbach stated in an interview with Handelsblatt. He highlighted Romania and other countries as particularly promising.
The company is significantly slowing the pace of new store launches, planning just a handful annually. This year, the number is projected to be four, a considerable decrease from periods where Hornbach opened as many as eleven locations in a single year. This change is attributed to increased competition and rising costs, including significantly higher land and construction expenses, which can reach 40 million euros per location.
Hornbach is also experiencing a notable increase in its online sales, a trend accelerated by the recent pandemic. The company’s e-commerce revenue currently accounts for 13% of its total sales and is steadily climbing towards a projected billion-euro revenue stream.
The company’s stock performance has been affected by a prevailing negative sentiment within the home improvement sector, with Hornbach noting a tendency to focus on challenges such as declining consumer spending and industry consolidation. Despite this, he expressed optimism about the potential impact of the federal government’s investment packages, urging prompt implementation to ensure their effectiveness and counter widespread skepticism.