A dynamic year for Brico Io

The number of outlets increased by 35 per cent overall, though the number of franchised stores rose by 37 per cent to 37 altogether as the result of ten new openings. This rapid pace of growth reflects the positive trend demonstrated by the sales channel and the Italian market as a whole in 2004. However, this trend seems to be slowing down in the first quarter of 2005.
The number of franchise stores rose by 37 per cent last year.
With sales of around € 113 mio, Coop Lombardia's sales channel nevertheless carried on with the growth plan introduced in 2003, which also covers innovations in the field of presentation. These have a major role to play in the expansion of the decor segment. “An area,” explains Aurelio Marchese, marketing director of the sales channel, “that has achieved substantial results, which allow us to make further investment in this product category in terms of the range available, and to invest in new initiatives like courses and demonstrations.”
The positive picture at Brico Io is not only characteristic of the decor segment: particularly good results were also achieved in the areas of tools, hardware and paint. By contrast, the annual result appeared weaker in the case of certain seasonal products such as air conditioners.
More private labels
The pricing policy is conceived so that the prices of ten per cent of the product assortment are increased by two to three per cent per annum, corresponding to the rate of inflation. In addition the range of private-label articles is being expanded. Currently the paint and framing product lines are being revamped, and in the course of this year it is intended to add new products including light bulbs, fixings, silicones, and building materials like cement or mortar, etc. It is clear that the choice is falling on consumer products where there definitely is a com-parable leading brand in existence.
Especially the décor segment has seen very good progress since 2004.
However, management has ruled out the inclusion of private-label power tools because it is not convinced of the appropriate response from customers. For this type of article, by contrast, it is more advantageous to make use of imaginatively named branded products.
Growth of franchise business
With regard to formats, Brico Io does not intend to modify its principles, which identify it with neighbourhood provider business ranging in size from 1 000 m² to 2 500 m². It must be mentioned here that franchising has seen strong growth in the last three…