The new German chain TEDi has recently opened its fourth store in Hungary. The product categories sold in the stores are similar to those of Pepco and KiK, which means that competition might be in trouble now.
TEDi offers everything from cosmetics, home furnishings, decorations and toys to office supplies and pet food. The chain might be new and Pepco and KiK might be already very well-established stores in Hungary, TEDi has a rather bright future in Hungary. Pénzcentrum has taken a look at where the competition among the industrial goods chains stands.
TEDi has four stores in Hungary: in Budapest at the Savoya Park and in the XVIII. district, as well as in Székesfehérvár and Pápa. In contrast, Pepco has 223 stores in the country, and Kik has more than 100 stores, according to their website. But TEDi could soon start a rapid expansion within Europe, not excluding Hungary.
According to Pénzcentrum, it is difficult to define the exact profile of these three chains. That is because they offer practically all kinds of goods that are needed in everyday life. TEDi’s motto, for example, “Everything decoration, party, stationery and much more” does not tell us too much. The range of goods on offer is reminiscent of the once common “hundred-forint” shops, a concept that existed abroad in the same way, as one-euro, one-dollar shops.
Although KiK has been present in our country since 2008, Pepco, which has been expanding since 2015, has many more stores.
Pepco Hungary Kft., the operator of the Pepco store network, generated net sales of HUF 68.5 billion from domestic sales in its last known financial year, from 1 October 2020 to 30 September 2021. Its 223 stores employed an average of 2,031 people, according to its annual report.
KIK Textile and Non-Food Ltd, which operates KiK stores, reported net sales of HUF 23.7 billion from domestic sales in its last known fiscal year, from 1 January 2021 to 31 December 2021. Its more than 100 stores in Hungary employed an average of 601 people.
How the new TEDi stores will perform in this regard is yet to be seen. However, one thing is for sure: just like both Pepco and KiK have their own loyalty buyers, TEDi will have many as well.
Source: Pénzcentrum, Store Insider, DNH