Major new player in Germany

The new cooperative organisation, which has been in business since 1 July, has more than 500 members with over 1 200 outlets in Germany, Switzerland, Austria and Italy that represent external sales of € eight bn. The market approach is being effected under both the Interbaustoff and I&M Bauzentrum banners, though members also have the possibility to act in an individual capacity. There had been discussions about working together since 2001, until at a shareholders’ meeting in March 2003 the members voted by an overwhelming majority in favour of bringing the two organisations together.
Klaus Lühmann and Thomas Rüppel, chairmen of the two supervisory boards, see one of the reasons for this move in the ongoing process of concentration on the manufacturing side, stating that, “We had to react so that we can continue to negotiate with suppliers on a level playing-field. For the proper understanding of a partnership involves equally strong partners being seated at the table.”
It is expected that the small- and medium-sized members will in future profit especially from synergy effects in all areas, more favourable buying terms and conditions through volume bundling, improved margins and considerable cost savings. What is more, the new cooperative also intends to provide assistance in exploiting new target groups, whereby it is setting its sights more firmly on the end-consumer. In this respect there are more possibilities in the area of repairs and renovations than in the declining new-build business. Special emphasis is also being put on streamlined and transparent central offices. The new cooperative is not to be run as a centralised system but oriented towards the members, who will also control it.
In future there will be around 180 employees working at the two head offices in Bad Nauheim and Karlsruhe, whilst the 500+ members will have more than 18 000 altogether.
The members of Interbaustoff operated a total of 122 builders’ merchant outlets with a combined sales area of 57 085 m² at the end of 2003. Gross sales amounted to € 84 mio. Interpares-Mobau had 236 retail outlets (over 300 m²) at the end of last year. Here gross sales of € 570 mio were generated on a combined sales area of 350 135 m².
DIY floorspace and retail sales (gross)(.pdf download)