Reorientation in Benelux

Bricorama has joined the Leusden-based Intergamma group of the Netherlands as a franchisee. Intergamma is number one in the DIY business in the Netherlands with its two marketing arms Gamma (138 outlets) and Karwei (82 outlets), and Gamma occupies the second slot in Belgium with 44 stores. Last year the group generated sales of approximately 1.3 bn euro.
What was it that induced Bricorama to join Intergamma? Eric Haegeman, the Bricorama director for Belgium and Holland, has let it be known that the Bricorama name was simply too little known. “Ask a taxi-driver in Tilburg to take you to Wickes and he will drive you straight there. If you want Bricorama he first asks you for the address,” says Haegeman. What is more, the Bricorama network was too small for advertising efforts and, in Haegeman’s view, there was little prospect of extending it. “The opposition’s delaying tactics mean that doubling the network would take about 20 years.”
The Bricorama logo will soon be disappearing in Belgium and the Netherlands….
… to be replaced by Karwei and Gamma.
Looked at from this point of view, it is a logical step to become part of an existing organisation in the light of the increased turnover. The problems relating to the lack of customer awareness and further expansion have been solved through the link-up with Intergamma. Most of the stores in the Netherlands are being remodelled in line with the Karwei format. “We prefer the Gamma concept, because it offers better sales per square metre. But Karwei is catching up quickly, and we have to take into consideration the prevailing market conditions and regional agreements,” is how Haegeman explains this decision. In Belgium all 23 DIY locations are being converted into Gamma stores. This signifies a great leap forward for Intergamma in Belgium, since it increases the number of Gamma outlets there to 67 altogether. Of this total 39 belong to Bricorama, since the French group previously acquired 16 Gamma stores from the Jacques Polet group.
The expectation is for Intergamma and the Bricorama group, which operates 67 Bricorama and nine Batkor stores in France, to work more closely together and make better use of synergies, most particularly in the area of buying activities.