Slow upward progress

Since 1991 Obi has been actively involved in Italy, where it now has a network of 53 branches, primarily concentrated in the northern and central regions of the country. In terms of sales area the company occupies third place in Italy behind Leroy Merlin and Bricocenter, both of which belong to Groupe Adeo. In 2011 Obi generated sales of € 390 mio in Italy with the help of some 2 200 employees. This puts the DIY retailer more or less on a par with Bricocenter, though the latter’s comparable total sales area breaks down into nearly twice the number of stores. Each year Obi reaches an average of around 14 mio customers in Italy. Whereas the overall number of stores in Italy went down in 2011, in spite of the market entry of two new companies (Brico Eight with five stores and Brikocasa with six), last November saw Obi open its 53rd DIY store in Tavagnacco, Udine. This latest Obi outlet (which, by the way, has opening hours of 8.30 to 20.30 Monday to Saturday and 8.00 to 20.00 on Sundays) covers a trading area with a population in excess of 150 000 and has a total sales area of approximately 7 500 m². Attached to the store is a garden centre of 2 800 m², while there are 59 members of staff to provide customers with advice, sometimes at the eight information stands that have been set up, about the product offer of around 50 000 items, as well as the various services available. Just like the other Obi outlets in Italy the new Tavagnacco store is structured in four “worlds”: building, living, garden and technology. This concept is designed to make it easier for customers to navigate their way towards the desired product. Altogether the company is pursuing a strategy of moderate growth in Italy. According to a corporate press statement, each of the new elements that have been introduced there over recent years serves to strengthen the brand’s growth and success, while moving towards the goal of market leadership in Italy. To this end the company is also offering its own programme of training and qualification for employees seen as having managerial potential. This includes a cooperative venture with E-ducation.it, a provider of training services based in Florence, to offer a “Retail Management” masters qualification. Last year 52 employees participated in the training programme, which encompassed more than 750 hours and lasted for around six months, and 46 achieved the required standard. Lectures alternated with two spells of practical experience during the…