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 Press Release Hamburg, 29th September 2006 Otto Group takes over OBI’s shares in the Joint Venture OBI@OTTO The Hamburg based Otto Group, the world’s largest mail order group and world number two in online business to the end consumer, and OBI, Wermelskirchen, Germany’s leading builders’ merchant chain, today announced that the Otto Group will take over 100 per cent ownership of the Joint Venture OBI@OTTO on 1st October 2006.
The decision, which was agreed mutually by the two companies and signed off contractually in Hamburg, stems from different visions of the strategic direction of OBI@OTTO and the future multi-channel operations of the two companies in the DIY sector.
OBI@OTTO GmbH & Co KG, Hamburg, was founded by the two partners as a 50:50 joint venture. It was conceived as a multi-channel retailer in the DIY sector, selling through catalogues and online, and, after a pilot phase, went online across Germany on 1st March 2001. The fundamental concept was to exploit the opportunities in e-commerce by combining the potential synergies of the market leaders in building and DIY retail stores (OBI) and in mail order (OTTO). As a multi-channel retailer, OBI@OTTO unites and combines the marketing opportunities offered by internet and catalogue ordering with OBI’s retail stores business. Today internet users can choose from a range of some 12,000 items from the hobbies, home and garden sections of the OBI@OTTO shop/catalogue.
The current 2006/2007 autumn/winter catalogue will be the last joint catalogue under the brand name. From 1st March 2007, the company will be renamed. The ranges available on the internet and through the catalogue will be further developed under the new name. The 100 or so OBI@OTTO employees will keep their jobs.
"Our collaboration with OBI provided a useful stimulus for both parties," stressed Dr. Michael Otto, Chairman of the Executive Board and Chief Executive Officer Otto Group. Dr. Otto looks to the future with confidence: "All options are open to us. We can either manage the company ourselves or in collaboration with a new partner."
OBI will focus its future multi-channel operations more strongly on the ranges it offers in its markets. "With the OBI brand, we want to present a clear and unmistakable profile to our customers in all market channels," explains Sergio Giroldi, Chief Executive Officer of OBI AG. “This requires us to link our operations in the different market channels more closely.”
Otto Group
Founded in 1949, the Otto Group is now a worldwide-operating trade and services group with more than 55,000 employees. The Group has 123 companies of primary significance and operates in 19 countries in Europe, North America and Asia. It is organised into four business segments: Multichannel Retail, Financial Services, Services and Wholesale. In the financial year 2005/06 (28 February) the Otto Group achieved revenues of 14.570 million Euros. Today, Otto is the largest mail order group in the world. The Otto Group is the world’s number two in B2C online trade, second only to Amazon. Over-the-counter retail trade constitutes the third pillar of the successful multichannel distribution concept at Otto. Global corporate activities and a variety of strategic partnerships and joint ventures provide Otto with excellent opportunities to transfer know-how and to use the synergy potential available. The fact that national companies are acting within their own responsibility to a high degree guarantees both flexibility and a close customer relationship as well as optimum target group appeal in the respective country.
Press contact:
Thomas Voigt, Phone: +49 (40) 64 61-401, Fax: -449, E-Mail:
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