Raising the standard

Over recent years the policy followed by Praxis has been based on expansion. Not only have the DIY stores become larger, but the parent group Maxeda’s 2004 acquisition of the Belgian Brico Group (with over 120 stores today) also provided growth. That required quite some organisational adjustments. “We had to get used to each other, but we have benefited from joint procurement for over a year now,” explains Ad Walther, chairman of Praxis. The Maxeda DIY Group has pooled its buying in Breda. However, the head offices in the Netherlands and in Belgium are in charge of procurement when it comes to country-specific concepts. “But articles such as batteries or paint, for example, that are sold in many of our other stores, including Hema and V&D, we stock under our “Sencys” label. We use the name “Baseline” for the lower-priced products. In addition, we make use of the “Praxis” label in our Praxis stores: in those segments where it is possible to replace a brand name. But we can’t entirely do without branded products at Praxis. Though if a brand name is unable to maintain its lead over the other products, we can simply replace it.” The Netherlands DIY sector owes a great part of its growth over recent years to the sale of products alien to the industry. However, Walter doesn’t think that that is where the future lies. “We did start to do it ourselves, but these products can be found all over the place these days, so they don’t generate much in the way of sales growth any more. It is not our core business, which is why we’ll fill the gap with something else.” In conjunction with Formido, Praxis covers the entire spectrum of the DIY market in the Netherlands. The group’s smaller sister has been the focus of several takeover speculations, but the opening of the new pilot store in Zaltbommel has convinced observers of the contrary. In the words of Walter, “Formido occupies other areas, is established in smaller towns, and the stores are smaller than the Praxis outlets as well. Which means we can’t fit our whole range of products into the stores, not physically at least. But customers can buy more than they actually see there.” Also important to Walter are know-how and advice, which is why the organisation invests in training. “This way we can make inroads into the specialised trade. Here our focus is on tiles, electricals and curtains. We offer an individual sewing service, and hanging the curtains could be the next step. The specialist trade will have to look to…