Vigorous expansion in the Netherlands

Hornbach was the third German group after Wirichs and Marktkauf to locate to the Netherlands. Industry analysts predicted that Hornbach, too, would enjoy no more than a short-lived escapade in the Netherlands, but the group appears satisfied with its sales figures.Although expansion is not happening as fast as hoped for, it is gaining momentum through the acquisition of two Intratuin garden centres (at Nieuwerkerk and Geleen). “There are only very few ideal sites left that are still undeveloped. Which is why we have to look for existing stores in the garden or DIY sector. We prefer locations we own ourselves. They require a higher initial investment, but are in the long run more cost-effective than renting,” explains May Meulenberg, director of Hornbach Nederland. The two newly-acquired Intratuin garden centres are being converted to the Hornbach conceptHe is more than satisfied with the sales achieved by the three existing locations. “We have a turnover of 140 mio guilders (64 mio euro). That is more than Marktkauf managed prior to pulling out with eight or nine locations. What is more, the retail space in Tilburg and Kerkrade is to be further expanded.” Hornbach also intends to open four more megastores at sites including Wateringen, Nieuwegein and Groningen, in addition to the two garden centre conversions. Meulenberg considers that Hornbach’s success in the Netherlands is founded on the structure of the company. “Our organisation concentrates exclusively on large-format stores. Praxis, for example, has smaller outlets as well as megastores. We save a great deal on the logistics side through the sheer size of our stores.” Buying takes place throughout Europe. It is the concern not only of group headquarters in Germany but also of the local branches, which purchase part of the goods. “In the long run our customers determine what we sell. Those responsible for the sales side also have a say when it comes to finalising the product ranges we carry. They are the ones who come into contact with the customers. What is more, it provides additional motivation.” The Hornbach stores in Kerkerade and Tilburg are to be expandedMeulenberg sees the company’s megastore concept as the key to its success. “We would rather not be so arrogant as to compare ourselves with Ikea, but Ikea’s success is based on the fact that its stores are unique. Which is what we are in the DIY sector. A customer goes into a store to buy something and is disappointed if he can’t find it…