“Market still has plenty of potential”

The German franchise operation Futterhaus is regarded as the “eternal no. 2” after Fressnapf in the German pet supplies retail landscape. But Herwig Eggerstedt, who established the company and is the undisputed driver behind the franchise system, can live with that: “We’re growing fairly quietly, but in a financially sound manner and cautiously as far as our choice of partners goes,” says the retailer. Naturally it’s not all sweetness and light among the 109 Futterhaus franchise partners, he continues, but the vast majority are committed, keen on expansion and happy to pursue this. They are looked after by a field team of six in Germany and Austria, who visit each store on a monthly basis. Around 60 employees work in the head office in Elmshorn, from where the company’s own 52 outlets and their approximately 450 staff are managed. And because the head office is already bursting at the seams, a new building is going up a few hundred metres away with room for up to 100 people. The Futterhaus concept is currently based on three pillars: 500 m² of retail area with no live pets, between 900 and 1 200 m² with pets and 400 m² stores in shopping centres. Concepts, brands and expansion Directly adjacent to the head office is the Futterhaus flagship store, a retail area of 1 200 m² extending over two floors, staffed by around ten people. With its open design, the red logo stripe on a bright yellow background that runs along the wall and its spacious pet enclosures, this store is the pioneer of the new retail area concept. Older outlets in particular are now being converted to the new concept. The focus here is on store standardisation with regard to shelf displays, premium placements and the layout of the retail area. There are no far-reaching changes in the range, on the other hand: Trixie, Royal Canin, Mars Petcare, Finnern and Nestlé Purina are the key brands in Futterhaus. Its private label range is also growing from year to year, however, with “Draft” and “activa” and currently accounts for a share of up to 12 per cent. Futterhaus’s last foreign ventures proved to be difficult, and so Austrian retail expert Norbert Steinwidder was a real find. By the end of 2011 it is expected that there will be 15 stores in all in Austria. Futterhaus is contemplating a possible overall total of up to 50 viable stores in Austria by the end of 2015. In Germany up to 200 new stores could open in the next four years, says Herwig Eggerstedt. And then there are the 50 outlets that…