Success in market niches

Operating in Germany at around 500 locations that cover seven retail sectors, NBB achieved consolidated sales of € 430 mio in the last financial year. The portfolio includes 98 Bauspezi DIY stores, 134 MDH (Marketingverbund für Deutsche Holzfachhändler) specialist timber stores, 101 Angelspezi outlets (specialist stores for anglers), 89 Kiebitzmarkt stores for pet food and products, as well as a small department store concept known as Sherlock (10 outlets), which is at times to be found within the precincts of big specialist retailers or supermarkets. A new franchise concept has been added this year in the form of the “Reiterwelt” for equestrian sports. All the companies operating within the NBB system are cared for by a staff of 70 at head office in Rodenberg near Hanover.During their presentation of the anniversary balance sheet, board members Tony Arthur Farkas and Heinz Dingfelder summed up the situation as they see it: that the NBB concept makes it possible to successfully fill market niches, and that the types of company developed to date have progressed rapidly from trendsetter status to success story. Characteristic of this retail philosophy is the preference for a relatively small floorspace. In this respect NBB has acted as the antithesis to the wave of gigantism in the retail sector that has hitherto continued unrestrained, and has managed to close gaps in the neighbourhood supply scene by means of its concepts.At the heart of this corporate development was the Bauspezi concept. At the end of 2006 the group had 94 such outlets with a combined retail area of 106 634 m² and net sales of € 175 mio.NBB operates in Austria with a 50 per cent stake in DFH Bauprofi Austria, which had 23 DIY stores with a combined retail area of 17 208 m² at the end of 2006. Tony Arthur Farkas can see continuing reserves for further growth in rural regions above all, and in medium-sized and small towns as well. The group has been able to make a name for itself in such traditional locations with its owner-operated Bauspezi stores. The companies that have been established in market niches are characterised principally by their customer orientation and a carefully targeted location policy. “Retailers carrying a basic assortment of products in rural locations or in relatively small intermediate centres will definitely remain competitive in the future,” says Tony Arthur Farkas with complete confidence.
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