La Prealpina plans rapid expansion

La Prealpina was established during the sixties in Roletto, Pinerolo, on the initiative of Guiseppe Ron as a company that imported and processed timber. The year 1988 saw the opening of a retail outlet to meet the requirements of tradesmen and consumers, and keep up with the demand coming from them. Today the La Prealpina Commercio division, which was founded in 1997, has eleven DIY stores located in Piedmont, Liguria and the Aosta valley.
The range is designed to appeal to women as well, since they make up 30 per cent of customers.
The company is managed by the three Ron siblings, with Gianfranco taking responsibility for the property department, Marinella running the administration, and Giulio managing the commercial side.
The network of branches is to be further expanded within the three regions and built up to a total of 20 stores. The recent new opening in Biella of a 2000 m² outlet was one further step towards this goal, and still another store (of 1500 m²) is to be added this year in the province of Savona.
All the stores are owned by the Ron siblings. Though serious consideration has indeed been given to the possibility of entering the franchising business, the intention is first to consolidate and harmonise the network of branches.
La Prealpina's team is working on achieving uniformity in their market approach, with regard to both the product assortment and the store layout. This process was initiated in 2001 with a high level of capital spending; 2004 was the year for the consolidation of operating results and reorganisation of the administrative structure. The administration was centred on Roletto, along with some of the logistics section, which guarantees an instant delivery service and handles 30 per cent of goods procurement and administration, in addition to promotional activities.
At present La Prealpina employs a workforce of 150. Sales amounted to € 25 mio in 2004, and a positive result is expected for 2005 as well, in view of the figures for the first quarter.
Stocks in La Prealpina stores cover the traditional DIY range, though timber is still their distinguishing feature, coming as they do from the timber processing sector and developing from a first outlet based on this material. The most successful departments include the recently expanded lighting section, as well as timber and housewares. There is great interest in own-label products, and consideration is also being given to the possibility of marketing home textiles and paint.
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