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Toom, the German DIY retail chain that is part of the Rewe group of companies, has geared its latest store entirely to the customer. A development that will set new standards in the whole of the DIY market in Germany
The latest Toom DIY store, located in Bad Säckingen on the border between Germany and Switzerland, is ringing in a paradigmatic change. The Cologne-based operator has succeeded in rediscovering the customer, in adjusting totally to his or her true DIY store needs, then consistently applying the results in-store, and in terms of concept as well. The customer-orientation is quite radical, reaching deep into the design of the store and into the new marketing concept. The requisite basic experience (including customers’ reactions to the reorientation, and emotional anchoring of the DIY store) was gathered at the Casa Lea project, which was implemented four years ago and has been continuously developed ever since.
Josef Sanktjohanser, chairman of the Rewe group, put it in a nutshell during the store opening at the end of July: “The masculine DIY store is an end-of-line model.” The traditional DIY store, which is geared first and foremost to the needs and skills of DIYers and trade professionals, is increasingly losing in importance, according to Mr Sanktjohanser. Only around 5.7 mio of the total of 23 mio DIYers that Rewe has identified in Germany actually belong to the group of ego-oriented and mainly masculine DIYers. They are the ones that advertising campaigns concentrate on. But the other group of around 17 mio more “us”-oriented potential DIY customers are, according to Toom, addressed only insufficiently or not at all: neither by advertising nor in the stores. What is more, the majority of customers so far consider that DIY stores fulfil no more than a supply function. This image is to be altered so that potential customers in future will think of DIY stores in connection with construction and lifestyle ideas that are simple and successful.
Though it cannot be said that the new outlet is a “feminine” DIY store. However, women and occasional DIYers are target groups that are more clearly addressed. The new concept combines the classic DIY store range with the services and advisory competence of installation businesses, home outfitters and interior designers by means of a simple transference of ideas. It is intended to apply key elements of the new concept nationwide from this coming autumn.
“Customers tick differently than we had always thought,” admits Georg Rothacher, chief executive of Toom. Practically all the customers who come into the store have a certain issue in mind. The DIY stores must deal more seriously with attributes; one customer wants brand names, the next cheap prices, others are interested in trends in styles, or think in packing units. But they think in concepts above all. Straightforward basic purchases – like a replacement for a broken hammer – make up only one small part of sales. So, to illustrate the point, a merchandiser full of house-moving equipment has been prominently positioned right in the entrance area. Here customers can quickly put together everything relevant to the topic, from sticky tape through to scissors, removal rugs and protective sheeting, as well as furniture rollers and suchlike. Previously you had to go to five different departments to collect this lot.
The central element of the store, which is more than 7 000 m² in size, is a mall running the length of the entire building. Positioned along the mall are three service centres as ports of call for customers. Arranged around this axis are 13 thematic “cubes”: workshop, security, climate control, roofs and walls, self-assembly furniture, kitchens, bathroom fittings, bathroom renovation, country living, classic, young lifestyle, green lifestyle and gardening. Each of the cubes offers a full customer service. For instance, if a shopper is planning to renovate his living room, the store will accompany the whole process from on-the-spot planning to providing a professional to do any work that the customer doesn’t want or is unable to carry out himself. Finally comes computation of the costs that will be incurred.
To give an example, the customer sends a sketch of his living room and its furnishings to the store. He receives in exchange a complete renovation and furnishing plan, including precise prices and charges, from design and furnishing experts working in cooperation with Toom. In addition, each cube offers thematically relevant display settings, so that the customer can get an impression of what the solution will be like later on.
Along the outer aisles of the store Toom offers customers the usual portfolio of products that can be expected in a classic DIY outlet. This means that traditional DIYers and tradesmen can find their preferred ranges here. The number of employees in Bad Säckingen, with its staff of 70, is between 20 and 25 per cent above the level that is normal for a store of comparable size, in order to provide customers with this quality of service. “We will take advantage of our competitive edge to actively set an example as an innovative trendsetter in the marketplace,” explains Georg Rothacher.
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Josef Sanktjohanser, chairman of the Rewe group, put it in a nutshell during the store opening at the end of July: “The masculine DIY store is an end-of-line model.” The traditional DIY store, which is geared first and foremost to the needs and skills of DIYers and trade professionals, is increasingly losing in importance, according to Mr Sanktjohanser. Only around 5.7 mio of the total of 23 mio DIYers that Rewe has identified in Germany actually belong to the group of ego-oriented and mainly masculine DIYers. They are the ones that advertising campaigns concentrate on. But the other group of around 17 mio more “us”-oriented potential DIY customers are, according to Toom, addressed only insufficiently or not at all: neither by advertising nor in the stores. What is more, the majority of customers so far consider that DIY stores fulfil no more than a supply function. This image is to be altered so that potential customers in future will think of DIY stores in connection with construction and lifestyle ideas that are simple and successful.
Though it cannot be said that the new outlet is a “feminine” DIY store. However, women and occasional DIYers are target groups that are more clearly addressed. The new concept combines the classic DIY store range with the services and advisory competence of installation businesses, home outfitters and interior designers by means of a simple transference of ideas. It is intended to apply key elements of the new concept nationwide from this coming autumn.
“Customers tick differently than we had always thought,” admits Georg Rothacher, chief executive of Toom. Practically all the customers who come into the store have a certain issue in mind. The DIY stores must deal more seriously with attributes; one customer wants brand names, the next cheap prices, others are interested in trends in styles, or think in packing units. But they think in concepts above all. Straightforward basic purchases – like a replacement for a broken hammer – make up only one small part of sales. So, to illustrate the point, a merchandiser full of house-moving equipment has been prominently positioned right in the entrance area. Here customers can quickly put together everything relevant to the topic, from sticky tape through to scissors, removal rugs and protective sheeting, as well as furniture rollers and suchlike. Previously you had to go to five different departments to collect this lot.
The central element of the store, which is more than 7 000 m² in size, is a mall running the length of the entire building. Positioned along the mall are three service centres as ports of call for customers. Arranged around this axis are 13 thematic “cubes”: workshop, security, climate control, roofs and walls, self-assembly furniture, kitchens, bathroom fittings, bathroom renovation, country living, classic, young lifestyle, green lifestyle and gardening. Each of the cubes offers a full customer service. For instance, if a shopper is planning to renovate his living room, the store will accompany the whole process from on-the-spot planning to providing a professional to do any work that the customer doesn’t want or is unable to carry out himself. Finally comes computation of the costs that will be incurred.
To give an example, the customer sends a sketch of his living room and its furnishings to the store. He receives in exchange a complete renovation and furnishing plan, including precise prices and charges, from design and furnishing experts working in cooperation with Toom. In addition, each cube offers thematically relevant display settings, so that the customer can get an impression of what the solution will be like later on.
Along the outer aisles of the store Toom offers customers the usual portfolio of products that can be expected in a classic DIY outlet. This means that traditional DIYers and tradesmen can find their preferred ranges here. The number of employees in Bad Säckingen, with its staff of 70, is between 20 and 25 per cent above the level that is normal for a store of comparable size, in order to provide customers with this quality of service. “We will take advantage of our competitive edge to actively set an example as an innovative trendsetter in the marketplace,” explains Georg Rothacher.
Download:
