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The German large-scale operators Obi and Hornbach have successfully, even very successfully, located to Switzerland, where they are doing business alongside the Coop, Jumbo, Do It + Garden DIY superstores belonging to Migros and other contenders
A question mark must be put against Bauhaus, since this group’s chosen location at Belp near Berne is still the object of much conjecture, at least to the public. Bauhaus in Mannheim has remained silent on the subject, as has the planning department of the local authority in Belp. It has just been announced that there are plans to open the first branch of Bauhaus in Niederwangen, south of the city of Berne, probably in the spring of 2005. The store is to have a weighted overall retail area of around 12 000 m².
Jumbo-Markt AG is striving for the broadest and deepest range, as well as local and national market leadership.
Do-it-yourself has experienced an absolute boom in Switzerland during the last few years. The German operators Obi, Hornbach and Bauhaus were not slow to react to the opportunity of profiting from the potential of a market worth around SFR 5 bn (€ 3.2 bn) (a figure for optimists only), from the then still intact price relationships, and from the attendant rates of growth. Whereas Obi today already has four outlets (in Dreispitz, Basel, Volketswil near Zürich and Aigle in French-speaking Switzerland) and is planning further projects in San Antonio, Oftringen, Winterthur, St Gallen and Berne, Hornbach operates stores of 10 000 m² and 12 000 m² in Littau, Lucerne and Etoy (near Geneva) respectively. Both are in the French-language west of Switzerland and offer 60 000 products at rock-bottom prices, from the smallest screw to a solid wooden staircase. What is more, another Hornbach store is expected to open in Villeneuve (where the Rhone flows into Lake Geneva) in December.
Concrete mixers and trailers are also aprt of the product offer (Jumbo Maximarkt).
The Swiss DIY retailers have reacted to this beleaguering by Obi and Hornbach with expansion in terms of both quantity and quality, which has resulted in the application of a variety of concepts. Coop Bau + Hobby rejected large-format stores absolutely and looked for their salvation in formats of approximately 5 000 m². Migros and Obi – Migros is Obi’s franchise partner – regard DIY superstores of between 8 000 and 10 000 m² as the solution, spread right across the country. The Jumbo superstores, which are self-service outlets with professional advisory services, are oriented towards the DIY, decoration and gardening product categories. Here Jumbo-Markt AG is aiming for regional market leadership throughout the whole of Switzerland. Excellent accessibility, top professional expertise and competitive prices are designed to lead to this goal, whereby the company is seeking to offer the broadest and deepest range combined with the most expert customer service. Mention is also made of the professionalism of the company’s staff in terms of technical, social and intuitive qualities.
Coop Bau + Hobby is not interested in large formats, but regards stores of approx. 5 000 m² as the appropriate solution.
In the opinion of Hans-Ulrich Gerber, chief executive officer of the the Do It group, which operates around 20 000 m² of DIY retail space, it is up to the suppliers in particular to react. The various non-specialist importers are required to adjust to the “Germany” level of retail prices. His group will attempt to further assert their model, strategy and policy, for instance by means of experts with professional knowledge of the industry and years of experience, through offering broad and complete ranges in all categories, as well as painstaking and carefully targeted price calculation. The Do It group also considers the sale of small quantities (to suit customers’ requirements) as advantageous. Along with eco-friendly products, the emphasis is on after-sales service here, with spare parts still available for certain goods years after their purchase.
Opinions differ on the question of the DIY retail area potential in Switzerland. Whereas Urs Jordi of Coop Bau + Hobby, Monika Weibel of Migros and Hans-Ulrich Gerber of Do It all consider the market to be “overstored”, other advocates of the industry represent the opinion that this potential has not been exhausted by a long way yet. In their view, specially such mountainous and fringe areas as the Grisons (the Chur catchment area, then on to the Engadine) and the canton of Ticino, as well as certain areas in the west of the country, could still easily take more floorspace. In quite general terms, the retail figures for Switzerland in January 2004 can be described as positive indicators, since purchases connected with home living notched up growth of five per cent. What is more, spring exhibitions such as “Habitat et Jardin” (= Home and Garden) in Lausanne, that revolve around gardens and lifestyles, have been registering new attendance records.
Do It + Garden Migros sees customer services, plants and gardens as provideing the main stimulus for future development.
Although it is generally expected that there will be a further deterioration in prices and increasing pressure on manufacturers and suppliers, local DIY retailers sketch in a picture of the future that is not quite so grim. In the opinion of Migros’ Monika Weibel, an improvement, a steadying of the marketplace, seems to be emerging, with a resulting opening up of new and additional opportunities. The garden will be, and will continue to be, the provider of stimulus. Accordingly, Migros too sees as key product categories the area of plants and gardens in general, then the creative ranges such as paint and handicrafts, followed by home appliances and luxury ranges. Where the large-scale stores are concerned, Do It + Garden Migros puts the main emphasis of development on the areas of garden and home living, plus services that include plant hire and installation or contractor services.
Walter Winkler
Jumbo-Markt AG is striving for the broadest and deepest range, as well as local and national market leadership.
Do-it-yourself has experienced an absolute boom in Switzerland during the last few years. The German operators Obi, Hornbach and Bauhaus were not slow to react to the opportunity of profiting from the potential of a market worth around SFR 5 bn (€ 3.2 bn) (a figure for optimists only), from the then still intact price relationships, and from the attendant rates of growth. Whereas Obi today already has four outlets (in Dreispitz, Basel, Volketswil near Zürich and Aigle in French-speaking Switzerland) and is planning further projects in San Antonio, Oftringen, Winterthur, St Gallen and Berne, Hornbach operates stores of 10 000 m² and 12 000 m² in Littau, Lucerne and Etoy (near Geneva) respectively. Both are in the French-language west of Switzerland and offer 60 000 products at rock-bottom prices, from the smallest screw to a solid wooden staircase. What is more, another Hornbach store is expected to open in Villeneuve (where the Rhone flows into Lake Geneva) in December.
Concrete mixers and trailers are also aprt of the product offer (Jumbo Maximarkt).
The Swiss DIY retailers have reacted to this beleaguering by Obi and Hornbach with expansion in terms of both quantity and quality, which has resulted in the application of a variety of concepts. Coop Bau + Hobby rejected large-format stores absolutely and looked for their salvation in formats of approximately 5 000 m². Migros and Obi – Migros is Obi’s franchise partner – regard DIY superstores of between 8 000 and 10 000 m² as the solution, spread right across the country. The Jumbo superstores, which are self-service outlets with professional advisory services, are oriented towards the DIY, decoration and gardening product categories. Here Jumbo-Markt AG is aiming for regional market leadership throughout the whole of Switzerland. Excellent accessibility, top professional expertise and competitive prices are designed to lead to this goal, whereby the company is seeking to offer the broadest and deepest range combined with the most expert customer service. Mention is also made of the professionalism of the company’s staff in terms of technical, social and intuitive qualities.
Coop Bau + Hobby is not interested in large formats, but regards stores of approx. 5 000 m² as the appropriate solution.
In the opinion of Hans-Ulrich Gerber, chief executive officer of the the Do It group, which operates around 20 000 m² of DIY retail space, it is up to the suppliers in particular to react. The various non-specialist importers are required to adjust to the “Germany” level of retail prices. His group will attempt to further assert their model, strategy and policy, for instance by means of experts with professional knowledge of the industry and years of experience, through offering broad and complete ranges in all categories, as well as painstaking and carefully targeted price calculation. The Do It group also considers the sale of small quantities (to suit customers’ requirements) as advantageous. Along with eco-friendly products, the emphasis is on after-sales service here, with spare parts still available for certain goods years after their purchase.
Opinions differ on the question of the DIY retail area potential in Switzerland. Whereas Urs Jordi of Coop Bau + Hobby, Monika Weibel of Migros and Hans-Ulrich Gerber of Do It all consider the market to be “overstored”, other advocates of the industry represent the opinion that this potential has not been exhausted by a long way yet. In their view, specially such mountainous and fringe areas as the Grisons (the Chur catchment area, then on to the Engadine) and the canton of Ticino, as well as certain areas in the west of the country, could still easily take more floorspace. In quite general terms, the retail figures for Switzerland in January 2004 can be described as positive indicators, since purchases connected with home living notched up growth of five per cent. What is more, spring exhibitions such as “Habitat et Jardin” (= Home and Garden) in Lausanne, that revolve around gardens and lifestyles, have been registering new attendance records.
Do It + Garden Migros sees customer services, plants and gardens as provideing the main stimulus for future development.
Although it is generally expected that there will be a further deterioration in prices and increasing pressure on manufacturers and suppliers, local DIY retailers sketch in a picture of the future that is not quite so grim. In the opinion of Migros’ Monika Weibel, an improvement, a steadying of the marketplace, seems to be emerging, with a resulting opening up of new and additional opportunities. The garden will be, and will continue to be, the provider of stimulus. Accordingly, Migros too sees as key product categories the area of plants and gardens in general, then the creative ranges such as paint and handicrafts, followed by home appliances and luxury ranges. Where the large-scale stores are concerned, Do It + Garden Migros puts the main emphasis of development on the areas of garden and home living, plus services that include plant hire and installation or contractor services.
Walter Winkler
