Operative excellence is the target

“Any retailer who doesn’t have an answer to digitalisation and doesn’t develop his branch system further is going to have problems,” said Torsten Toeller, founder and proprietor of Fressnapf, at the company’s annual press conference in Krefeld. To be equipped to face the future, the retail group signalled the start last year of the so-called Challenge 2020. The system prerequisites for implementation of the master plan are to be created with the “Compass” project and the introduction of SAP across the company. Fressnapf is investing € 30 mio in this initiative.
As a first step, Fressnapf has embarked on improving and extending operative excellence in all channels and in all twelve countries in which it is represented, including its domestic market. The company aims to have a clear focus on the customers and their needs. A particularly important factor is the swift conversion of the Fressnapf stores to the Future Store concept, which has already been accomplished in two thirds of all of its stores in Germany. The chain also wants to step up the pace online. “Our online shop must be as good as that of a company operating only on the Internet,” Toeller demanded. Other objectives are the linking of all sales channels in a cross-channel strategy and the gradual development of customer knowledge (CRM), so as to be able to provide made-to-measure offers and solutions.
The list of initiatives to be actioned in the next few months also includes the opening of the semi-automated small animal warehouse at the company’s headquarters and the construction of a new regional warehouse, probably in the Hannover area. New distribution networks are also to be built up for the international market.

As well as introducing new processes, Fressnapf views the introduction of further private label goods as a good opportunity to increase efficiency in the company and to compensate for lost margins due to fiercer price competition. Private label currently accounts for 35 per cent of Fressnapf’s stock and is to be increased “in the next four to five years”, according to Toeller, to up to 50 per cent. The company plans to introduce “Real Nature Wilderness” this year, a grain-free pet food brand that is oriented to the nutrition of…