The Austrian Retailer Mareike Kerschbaum, Richard Dobisek, Lisa Sattler
Company history 1962 Foundation of Hofer by Helmut Hofer 1968 Acquisition of Hofer by ALDI 1980 Broadening of the range of promotional items 2001 Special offers 2 times a week 2002 Launch of organic brand “Natur aktiv”
Company history 2003 Hofer as a travel operator 2005 Market entry in Slovenia and Switzerland 2005 Hofer as a mobile phone discounter 2006 New organic brand “Zurück zum Ursprung” 2007 Market entry in Hungary and Greece
Market Share Retailers in Austria 2006
Number of Retail stores 2006
Company philosophy „Focus on the basics“ Selective range of products High quality standards Constantly low prices Highest utility for customers Elaborated and uniform selling concept Competent management Store brands vs. brand-named products
Lineight by Hofer
Expanding in services Travel industry E-tailing – Photoservice Insurance services Electronics and mobile (cell) retailing Petrol station services Hofer Lineight BSCI
SWOT - Strengths Low-cost pricing Simplified store structure and organization – “Inventory Stores” Market leader among discount retailers
SWOT - Weaknesses Lack of known brands Products offered just in large quantities Small product range variety Weak promotion-mix
SWOT - Opportunities Rapid growth of discount retailing segment in Austria Shifts in target markets – Crisis Change of consumer behavior
SWOT - Threats Tough competition Discretionary income decrease can reduce sales
Sources www.hofer.at www.hoferreisen.at www.aldi.de www.aldi.com http://www.lebensmittelnet.at/article/articleview/63872/1/ 24306 http://www.oe24.at/
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