Obi to end franchising

Obi intends to abandon the franchise principle and operate new outlets only as joint ventures in the future. The company has confirmed a report to this effect in the Lebensmittelzeitung, a trade paper. This says that Obi boss Sergio Giroldi expects more homogeneity and efficiency from the new strategy. The company has long abandoned franchising in its operations abroad. Obi has a direct participating interest in these companies, which are established jointly with partners. To Giroldi's way of thinking, this provides far better possibilities for managing the operative business. The report also says that Giroldi favours much smaller retail areas than have so far been the norm for Obi. A figure of 10 000 to 12 000 m² is mentioned as the optimum upper limit, and product ranges are not to exceed a total of 50 000 articles.