Gamma in a fragmented DIY landscape

Rudi Petit-Jean, Gamma Belgium
Rudi Petit-Jean: I made it one of my main concerns to bring the purchasing function to Belgium. Since August 1999 we have had a purchasing team of our own working on bundling the massive purchasing power of Intergamma whilst taking special national features into consideration. Belgium accounts for approx. 10 per cent of the entire consolidated Intergamma turnover of BEF 44 000 Mio, Gamma Netherlands accounts for 66 per cent and the Karwei stores 24 per cent.
We have found that our “local targeting” is bearing fruit: our advertising leaflets are having more success. Every fortnight two million copies of our Gamma leaflet are printed. Added to this are 23 different commercials broadcast over 23 weeks by four Flemish radio stations. This tie-in is unique among DIY groups.
Our position in Belgium is rather more difficult than that in the Netherlands. Our DIYers tend to be more professional in their approach. This has to do with the proportion of home owners here, which is high at 70 per cent. But apart from this we have a rather fragmented retail landscape where customers happily go from one company to the next.
Today Gamma has 45 stores in Belgium.
DIY in Europe: But surely you try to secure their loyalty?
That is not so easy to do because customer frequency is far too low. And if you issue customer cards, as is now being done, they must come complete with some other add-on advantage. Our leaflets have proved time and again that they are the driving force of our business and the majority of customers are either out for special offers or simply casual shoppers. We have to offer a general range of products in our stores. We have a retail area of 1 500 m2 on average and that is not enough, for product ranges are becoming more and more comprehensive.
How would you describe Gamma compared with the competition?
We are very much geared to “doing it yourself”, with a strong accent on decor. Home enhancement has great significance: window decoration, ready-made curtains, mirrors, hobby supplies and special painting techniques. Besides this we also offer luxury product ranges in the electrical and sanitary categories. Where prices are concerned we are positioned between Brico and Bricorama.
Two million copies of the Gamma leaflet are printed fortnightly.
You have 45 stores today, so will any more be added?
For Flanders I see between 50 and 55 outlets as the upper limit, whereas the Walloon market is still open to us. We shall concentrate more…