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hagebaumarkt DIY store franchise system

With currently almost 300 locations in Germany, hagebaumarkt DIY stores rank among the top 5 in their line of business. The Soltau based company ZEUS Zentrale für Einkauf und Service GmbH & Co. KG is franchisor for the hagebau retail trade. ZEUS, being the leading cooperation in the do-it-yourself and garden sector, combines all German and Austrian hagebau retail trading activities. Almost 190 employees at the headquarters in Soltau and 21 at the Austrian branch are engaged in category management, sales and distribution, administrative organisation, system development and marketing.

Do-it-yourself store with a strategy

The brand name “hagebaumarkt” stands for a service and merchandise system enabling traders to effectively run a do-it-yourself store with an attached garden centre. The following factors form the basis of the franchise system’s success:

 

  • joint market appearance
  • joint range of goods
  • joint administrative organisation and merchandise management

 
The market positioning of all German hagebaumarkt DIY stores relies on every single regional trader’s performance and efficiency. Hence, ZEUS supports dedicated retailers in managing their stores in an economically sustainable and competitive way.

Success factors

The franchise system’s success is secured by a variety of projects and instruments continuously enhancing the stores’ attractiveness, reducing the amount of work involved and improving the efficiency. For example:
 

  • LeanStore – analysis and improvement of all work processes
  • training programme for store managers – ensuring equal skill levels of all store managers and their deputy managers
  • ZEUS customer analysis – market research at the point of sale: examining customer satisfaction and identifying customer potential
  • market potential analysis – identifying and analysing the market potential of individual locations
  • market basket analysis – examining and checking the market basket as well as the customer demographics
  • hagebau Plus+ – cost and profit reporting within the hagebaumarkt system

Product range selection

Depending on the various store sizes tailor-made profitable product line modules form the basis of the goods range on offer. In addition ZEUS provides hagebaumarkt DIY-stores with complementary products in order to raise the site-specific profile of each and every location.
 
Besides the classic product range for do-it-yourself fans the garden sector has become firmly established. A great number of hagebaumarkt DIY stores have a garden centre attached. Their classic product range on offer comprises plants, garden accessories, wooden garden equipment, garden technology and a creative segment. Moreover, zoo departments are becoming more and more popular and are increasingly being integrated into hagebaumarkt DIY stores.

Success factor number one: the staff

Friendliness, expert advice and a pleasant shopping atmosphere can only be experienced personally. Therefore, direct customer contact is decisive for a hagebaumarkt DIY store’s economic success. It is this knowledge which the new advertising campaign “hagebaumarkt – Hier hilft man sich” (“hagebaumarkt – Where we help each other”) is based upon: Owners of hagebaumarkt DIY stores and their staff are deeply rooted in their region. Therefore the shopping atmosphere is more personal. Similar to a harmonious neighbourhood, people know each other, are friendly and feel close to each other. Helpfulness, competence and vicinity are characteristics of every single hagebaumarkt DIY store – a message also being conveyed by German television star Mike Krüger, advertising figurehead and the most famous hagebau customer.

hagebau direkt

hagebau direkt is a joint venture combining hagebau’s great competence in the do-it-yourself sector and the customer-friendly order and delivery service provided by OTTO, the world’s largest mail order group. Hence hagebau is the first supplier in the do-it-yourself business to professionally seize the opportunities offered by multi-channel business linking stationary trade, internet and mail order business.
 
Due to their entry into the internet and mail order business, hagebaumarkt DIY stores can get into contact with their customers not only over the counter but also via mail order business (hagebau direkt) and the internet (www.hagebau.de). 24 hours a day. Thus hagebaumarkt DIY stores can extend their range of products and increase their sales without expanding their retail space.

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