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A new franchisor is entering the German DIY scene with the arrival of Fair Bau-Depot of Essen, which intends to make discounting acceptable in German DIY stores
Heiner Ross and Joachim Aschenbruck are not prepared to accept that depot stores and discounters in the DIY sector should find things more difficult in Germany than in France, for example. The team responsible for Fair Bau-Depot in Essen regard their marketing model as the ideal concept for outlets with retail areas between 2 500 and 6 000 m2, even though for years there has not exactly been a mushrooming of depot DIY stores in the Federal Republic. The Essen-based company wants its franchise concept to go back to the core competences of DIY stores. What is more, the intention is to seek out the competition by positioning outlets in the vicinity of big, full-line DIY distributors.
The depot stores are to carry a range of products that includes 15 000 to 20 000 articles in eight or ten product categories. Advertising is to be carried out by means of a monthly catalogue plus an extra catalogue of special offers twice a year. “When we advertise it is only to promote specific goods without touching the core range.” The core range is offered at permanent low prices and augmented by seasonal goods and special offers. Once actually inside the stores, the intention is to make an impression of tremendous choice through the sheer volume of goods.
Heiner Ross (o) and Joachim Aschenbruck are sure they will succeed.
Where prices are concerned, management wants to position them between three and eight per cent below those of the competition and achieve 80 per cent of turnover with about 20 per cent of stock. The stockturn figure should be above four. Heiner Ross is convinced that, “Space productivity must be increased at depot stores, with a somewhat lower mark-up instead.” It is hoped that own-label products will be of assistance here. In this area Fair Bau-Depot is concentrating on sanitaryware and paint at first, and has ten per cent of sales as its ultimate goal. Ross considers that 70 per cent of the normal DIY product offer is suitable for depot marketing, though part-ranges such as hydroponics, pets, wallpaper and ambience lines are not.
Fair Bau-Depot is to be marketed both as a complete franchise system and as individual modules, of which there are four: publicity, corporate structures, product mix and financing. “In principle we are interested in every individual DIY store operator, and in whole groups as well, who want to take over our system either as a whole or in separate components,” in the words of Aschenbruck.
The depot stores are to carry a range of products that includes 15 000 to 20 000 articles in eight or ten product categories. Advertising is to be carried out by means of a monthly catalogue plus an extra catalogue of special offers twice a year. “When we advertise it is only to promote specific goods without touching the core range.” The core range is offered at permanent low prices and augmented by seasonal goods and special offers. Once actually inside the stores, the intention is to make an impression of tremendous choice through the sheer volume of goods.
Heiner Ross (o) and Joachim Aschenbruck are sure they will succeed.
Where prices are concerned, management wants to position them between three and eight per cent below those of the competition and achieve 80 per cent of turnover with about 20 per cent of stock. The stockturn figure should be above four. Heiner Ross is convinced that, “Space productivity must be increased at depot stores, with a somewhat lower mark-up instead.” It is hoped that own-label products will be of assistance here. In this area Fair Bau-Depot is concentrating on sanitaryware and paint at first, and has ten per cent of sales as its ultimate goal. Ross considers that 70 per cent of the normal DIY product offer is suitable for depot marketing, though part-ranges such as hydroponics, pets, wallpaper and ambience lines are not.
Fair Bau-Depot is to be marketed both as a complete franchise system and as individual modules, of which there are four: publicity, corporate structures, product mix and financing. “In principle we are interested in every individual DIY store operator, and in whole groups as well, who want to take over our system either as a whole or in separate components,” in the words of Aschenbruck.
