DIY plus

High-footfall furnisher 

Domäne operates 30 furniture stores in Germany. Further new openings are to follow as a result of the involvement of the Austrian Lutz Group

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One of the most recent Domäne stores was launched at the end of October 2005 in the Adlergestell specialist retail centre in Adlershof, Berlin, where it occupies a retail area of approx. 7 500 m² (plus a 4 000 m² warehouse). “Quality at home – good value from us” is their slogan for wooing customers. Typically for the company, the furniture store focuses on all potential customers who want to finish or furnish their homes following completion of the building shell.
Domäne has no problem with the neighbouring Obi outlet (and, if the reports can be believed, nor do the Obi people for their part have any problem with Domäne). On the contrary: large parts of the product mix and range are too different, and the customer profile is also too different. Even though, after furniture, DIY store products make up the second largest share of Domäne’s turnover, there is understandably no comparison when it comes to product depth in this area – and none is desired, either. Since different customer groupings are targeted, Domäne even tends to regard itself as a generator of footfall at the new location, for the DIY retailers nextdoor as well.
The furniture store has two floors, though it looks to be three- or four-storied from the outside. This is partly true, since the building also houses a 24-hour keep-fit club. All the decorating and typical DIY ranges are located on the ground floor. These include carpeting, carpets, curtains, soft furnishings, paint, tools, lighting, housewares, gift articles and garden products. The furniture department (including kitchens) is on the first floor, together with a service restaurant that is unique at Domäne.
The amount invested in the building came to around eight million euros altogether, with a further six million going on furnishings and fixings. The contrasts with “normal” DIY stores become immediately evident to any customer who goes through the store. The aisles are much narrower, the racking is lower, and the ceilings have been lowered to make the rooms lower too, although they are high in the original plans. There is none of the clear overview that we are used to having in DIY stores, and that is part of the design there. A striking feature is the clear and consistent application of a three-tier pricing message: cheap, medium and up-market. So the floor coverings at the first two paternosters all cost four euros per square metre, at the next two the price rises to six, and to eight at the last two. These three price categories…
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