Praktiker Bau- und Heimwerkmärkte Holding AG, Kirkel

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local suppliers to an extent in excess of 80 percent in most cases. The share of private labels sold in
international outlets in 2007 stood on average at 3.7 percent, the same as in the previous year.
Innovation and development
Praktiker has developed a small store format in Greece with a selling space of 4,000 square metres.
The product range in one of these smaller stores is as broad as that of a standard format outlet, but
the depth of the assortment has been reduced. This format is particularly well-suited for catchment
areas with lower population densities or purchasing power. It therefore permits market penetration
even in areas where standard format stores would not be viable. Apart from Greece, this format has
also been used in Romania. In future, it can be transferred to other countries too.
In Hungary, Praktiker has equipped a store with an innovative, electronic price labelling system. The
system permits to control the shelve prices centrally. If it proves to be successful, it may be used in
other stores, too.
Other key events
At the beginning of July 2007, a fire destroyed parts of the Praktiker store in the Greek city of Thessaloniki.
As early as November, however, customers were again able to purchase at least certain products
from the company’s range in a provisional store covering a sales area of around 1,500 square
metres. The complete reopening of the outlet is planned for summer 2008. Praktiker did not incur any
financial losses as a consequence of the fire as adequate insurances for inventories, shop fittings and
business interruption had been contracted. Nevertheless, the closure of the market in the second half
of the year resulted in sales losses amounting to around 22 million euros.
In the financial year under review, the group managed to turn its Poland business around, generating
positive operating earnings again for the first time in years. This development was attributable to a
range of individual measures resulting in changes to the product range structure, brand positioning
and the scope of available service offers.