Expansion into Spain

In mid-December 2014 Hagebau did not wish to comment on an initial report by the online service of the trade magazine Ferretería y Bricolaje, but a month later the German builders merchant and DIY cooperative confirmed the news officially in a press release: Hagebau is now active in Spain.
On 1 January 2015, two Spanish businesses joined the German speciality retail cooperative as partners. The addition of Coferdroza of Zaragoza and Coarco from Tenerife to its circle of partners “will drive its internationalisation forward consistently”. This increase in the number of partners means that Hagebau now operates in seven European countries.
“The fact that we now have a foothold in Spain is extremely significant for the continued growth of Hagebau,” said Heribert Gondert, spokesman for the cooperative’s management. “By expanding its operations to Spain we are laying down a good foundation for successful further development.”

The 275 Coferdroza members operate stores on the Spanish mainland, while Coarco with its 186 members is active in the Canary Isles. The two new limited partners at Hagebau operate in both the speciality and retail trade. Collaboration between Hagebau, Coarco and Coferdroza will thus encompass virtually the whole of Spain and will focus on cooperation in the retail trade. The two Spanish companies were advised by the German commercial law firm Beiten Burkhardt during negotiations to join the cooperative.
What the work­ing relationship entails has not been made very clear up to now and none of the three partners has explained it. The German cooperative will naturally increase its purchasing volumes, but there is no indication as yet that it will play to one of its other strengths, namely multiplying its distribution channels.
The main marketing system in the retail trade is the Hagebaumarkt brand, which is available exclusively to Hagebau partners. It is marketed on franchise terms by the wholly owned Hagebau subsidiary Zeus. The Werkers Welt line is available as a small area format, along with Floraland as a garden retail format.
At any rate, Hagebau aims to expand further abroad and has been eyeing opportunities in Spain in particular. The market there is extremely fragmented with a concentration rate of just 25 per cent, according to Torsten…