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Market leader Danske Trælast (market share 40 per cent) is a prime example. It is now demanding payment terms of 90 days from its suppliers, a period that is very high for this industry and for Denmark. According to group head Steen Weirsoe, suppliers have to adapt to these longer credit terms and to “greater flexibility”. The aim is to reduce the current figure of 1 350 suppliers down to 500. This will result in mergers among manufacturers.
Jem & Fix has positioned itself in Denmark as the cheap DIY store.
Danske Trælast is the parent company of Danish distribution channel Stark with 75 stores, and also of Silvan Kæden with 37 outlets in Denmark and 11 in Sweden. In addition, the group is represented in Norway by Neumann Bygg (9 stores), in Sweden by Bejer (52 stores) and Cheapy (8 stores) and in Finland by Starkki (19 stores). Group sales amount to over € 2 bn.
Danske Trælast has initiated a strategic purchasing alliance with Home Depot, as a result of which Home Depot brands will soon be on sale in Danish DIY stores. This has now given rise to intense speculation in the Danish industry over whether the orange logo of the Americans will soon be on display in Denmark. And as far as Hornbach is concerned, there’s conjecture that Denmark could now be next on the list after Sweden, although no statement has yet been issued by Hornbach regarding this.
However, another new player in the Danish market is already on its way: the Finnish Kesko Group. As reported in a Danish paper at the beginning of the year, Kesko will be ready to launch there in just a few years, according to group vice president Mikael Forrs. Many Danish manufacturers are looking forward to this move, because Kesko would offer them another option. And Kesko will surely not repeat Bauhaus’s initial mistake of relying heavily on international suppliers – Danish consumers prefer domestic manufacturers. Private labels are now a feature of the range too in every chain, often produced by well-known brand manufacturers.
Silvan uses the advertising slogan “Nobody’s cheaper”.
Retailers are looking increasingly to their trade customers, and leading players such as Bauhaus or Stark are setting the tone here. One example is the Drive-in Zone, which Bauhaus intends to add to two existing branches this year. At Stark, the building materials and DIY distribution channel of Danske Trælast, trade customers account for 75 per cent of sales, and 36 of the 75 outlets have a special DIY range. The channel came into…
Jem & Fix has positioned itself in Denmark as the cheap DIY store.
Danske Trælast is the parent company of Danish distribution channel Stark with 75 stores, and also of Silvan Kæden with 37 outlets in Denmark and 11 in Sweden. In addition, the group is represented in Norway by Neumann Bygg (9 stores), in Sweden by Bejer (52 stores) and Cheapy (8 stores) and in Finland by Starkki (19 stores). Group sales amount to over € 2 bn.
Danske Trælast has initiated a strategic purchasing alliance with Home Depot, as a result of which Home Depot brands will soon be on sale in Danish DIY stores. This has now given rise to intense speculation in the Danish industry over whether the orange logo of the Americans will soon be on display in Denmark. And as far as Hornbach is concerned, there’s conjecture that Denmark could now be next on the list after Sweden, although no statement has yet been issued by Hornbach regarding this.
However, another new player in the Danish market is already on its way: the Finnish Kesko Group. As reported in a Danish paper at the beginning of the year, Kesko will be ready to launch there in just a few years, according to group vice president Mikael Forrs. Many Danish manufacturers are looking forward to this move, because Kesko would offer them another option. And Kesko will surely not repeat Bauhaus’s initial mistake of relying heavily on international suppliers – Danish consumers prefer domestic manufacturers. Private labels are now a feature of the range too in every chain, often produced by well-known brand manufacturers.
Silvan uses the advertising slogan “Nobody’s cheaper”.
Retailers are looking increasingly to their trade customers, and leading players such as Bauhaus or Stark are setting the tone here. One example is the Drive-in Zone, which Bauhaus intends to add to two existing branches this year. At Stark, the building materials and DIY distribution channel of Danske Trælast, trade customers account for 75 per cent of sales, and 36 of the 75 outlets have a special DIY range. The channel came into…
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