Cross-border alliance

The Puntolegno cooperative had 31 affiliated DIY stores with a combined sales area of nearly 50 000 m² at the end of last year. DIY in Europe spoke with Carlo Canavasso, the cooperative's sales director, about the work that has been done so far, as well as projects for the future in the light of the coming internationalisation.
Carlo Canavasso is sales director of the Italian Puntolegno voluntary group.
Let's first take a closer look at Puntolegno's product assortment. What changes have taken place so far?
First of all it must be said that the voluntary members of the cooperative originally specialised in different products, which means that some concentrated on timber, others on building materials, and still others solely on hardware. Bit by bit we put together a more uniform assortment, which was at first destined for the store's hard DIY segment. Only later did the range become broader and more decorative, more geared towards home enhancement. We have carried out many surveys and discovered that 60 per cent of our customers are women. These are customers who find décor and gift lines just as attractive as textiles, fixtures and furnishings. This has resulted in changes to the merchandising as well as to the amount of space dedicated to the various product categories. Previously a lot of space was reserved for power tools, but nowadays that has been reduced in favour of other product categories.
Furniture has become an important part of the product range in many DIY stores. What has been your experience in this field?
Our experience with furniture has been very positive, though here as well the market has changed. There is less demand for flat-pack furniture in our stores, but sales of so-called personalizable furniture have gone up. This is an interesting product made of solid wood that has not long been on the market. The various pieces can be decorated to provide that personal touch in accordance with the current market trend.
At the end of 2004 the cooperative numbered 31 DIY store locations.
Crises, reduced purchasing power and a constantly increasing spending gap. These topics currently dominate the press and TV. Are you feeling the effects of these problems too?
And how! We do try to accommodate our customers, but we must keep an eye on our own interests as well, since the disparity between rich and poor is increasingly affecting our profit margins. How are we supposed to provide special offers if our profit margin continues to shrink? What is more, we…