Imports only within limits    

Download: Imports only within limits (pdf file)
Brico Italia is the DIY retail arm of the Sidea cooperative organisation that is headquartered in Voghera in the province of Pavia. The format at present has eleven members operating outlets that are between 650 m² and 1 500 m² in size.The format was launched in 1996, though trials had begun some years before that with the “Edil Corner” brand, which was designed for builders’ merchants who wanted to fill a corner of their store with DIY products. The demand experienced here led to expansion of the model until the Brico Italia format was eventually founded.The expansion programme foresees just a few carefully selected new openings. “We are not in a hurry, because we first have to get to grips with the possibilities and dimensions inherent in the model,” explains Lorenzo Molossi, who has responsibility for Brico Italia within Sidea. “Moreover, we prefer to choose our partners with the utmost care. Although we do take all applicants into consideration, we give preference to those who are in some way involved in the sector and consequently have a better understanding of the dynamics of the market.” There is a marked tendency for entrepreneurs with no experience in the industry to try their luck in the DIY retail sector, the majority of them coming from the building materials and plumbing supplies business. The Brico Italia formula is “turnkey”, i.e. covering both planning and implementation of the project. “We offer partners a non-binding proposal for the fittings, look into their product range and terms of payment. The possibility of providing support if required is established in addition, and the entrepreneur has to agree to undertake regular training updates. Member companies are visited every month, and changes in the product range to reflect each changing season are worked out as appropriate.”The entrepreneur is asked to pay an entry fee calculated according to the size of his store. This covers the feasibility study and the implementation of the project. Once this stage is completed, the affiliated retailers are required to pay a percentage of their sales, and are obliged to carry a certain range; otherwise they can choose their suppliers quite freely, though the member companies actually prefer Brico Italia’s suppliers, using them for 75 per cent of their assortment on average.In addition to a suitable location and a catchment area of 20 000 inhabitants, potential partners must have a retail area of at…