Battle is joined in Austria

“Expansion in Austria” is a phrase that the big German pet supply chains must have used frequently a few years ago. There is no other way to explain the enormous interest of Futterhaus, Fressnapf and Zoo & Co. in having a strong presence in Austria. This increased presence is also due, of course, to the fact that Austria is a lucrative market. The reasons for this are the growing number of pets on the one hand, which amounted to 5.16 mio in 2012, and the substantial purchasing power of Austrian pet owners on the other. According to data from GfK-Geomarketing, this purchasing power averages out at € 21 295 per capita. These are the factors that make Austria an attractive proposition for the speciality chains. Fressnapf dominates the market The front-runner here is Fressnapf, which now operates 115 stores in Austria. These achieved sales of € 117 mio in 2012. The company is not content with this store count, however, even if Norbert Marschallinger, who heads Fressnapf’s operation in Austria, says: “There isn’t really an answer to the question of what the limits are on expansion in Austria, as we are constantly developing new store concepts. But with the existing concept, we will attain optimum coverage with around 130 stores.” Marschallinger is aware of the growing competition, however. “Pet supplies retailing is increasingly fiercely contested due to competitors from the grocery sector, online suppliers and discount campaigns.” The aim is to stave off the competition by increasing the range of private labels offered, among other things, and by consistently pursuing a cross-channel strategy. The price offensive of Fressnapf’s head office in Germany is also being closely followed. By contrast, the Megazoo pet store chain, which also belongs to the Fressnapf Group, is backing the destination store option. It has five large stores in Austria, in Vienna, Brunn, Innsbruck, Klagenfurt and Linz. “We are a high-end store with a bold approach to space and the mission of inspiring people,” says Thomas Ptok, managing director of Megazoo Austria. Running a large-format store, such as the 3 200 m² store in Vienna, calls for a large measure of sensitivity, according to Ptok, because the running costs are high and have to be covered. In Ptok’s opinion, this only works if the store succeeds in attracting and keeping customers thanks to a unique shopping experience and above all to extremely well trained staff. The employees shoulder the greatest responsibility: “Since…