Fressnapf: continuous strong growth through franchising
The Fressnapf Group, which claims to be Europe’s market leader for pet food and accessories, is to continue to expand its system at the same fast rate as in the past. In 2005, Fressnapf enjoyed a 13.1% increase in Europe-wide sales achieving an overall turnover of €733m.
According to Fressnapf, the reason for this increase can be put down to the continued expansion of the system: 80 new Fressnapf stores were opened up throughout Europe in 2005. This means that there are currently around 730 shops in ten European countries, the majority of which (575) are in Germany. Torsten Toeller, founder and managing partner of Fressnapf explained that the company is making every effort to further expand the system within Europe. Each year, the system is launched onto two new markets: last year priority was given to France and Italy; this year, Ireland and Spain are top of the expansion list. In all probability, the first Irish store shall open its doors to the public this April. Plans are already being drawn up for Spain with the first shop due to be set up at the end of 2006. The most successful foreign markets are Austria and Switzerland. As far as the Eastern European states are concerned, the system has, so far, only been launched in Hungary but the company is hoping that other markets shall be joining the network in the not too distant future.
To be able to keep up with the demands of the expansion across Europe, the central warehouse (in the German city of Krefeld) has been extended in size from 8,000m² to 33,000m² making it Europe’s largest central warehouse for pet food and accessories. Besides these activities, Fressnapf was also awarded more prizes in 2005: in November, the company won the equivalent of the retail “Oscar”, the “Goldener Zuckerhut” and Ingrid and Herbert Müller, Fressnapf franchise partners were awarded the prize, “Franchisee of the Year 2005”.