01.10.2018 | Hamburg/Soltau
hagebau KG and the Otto Group have reached a mutual accord to wind-up the successful Joint Venture baumarkt direkt on 30.06.2019. In future, both companies intend to manage the online sales of their respective DIY assortments independently. Driving the decision are the differing business models involved: the hagebau cooperation pursues a cross-channel approach, while otto.de follows a platform strategy. The Joint Venture’s workforce of approximately 200 at the Hamburg location will be reallocated across both parent companies.
The Joint Venture baumarkt direkt established in 2007 operates online shops for DIY enthusiasts, which include hagebau.de, hagebau.at and werkerswelt.de. Furthermore, baumarkt direkt markets its DIY assortment via otto.de and other Otto Group online retailers’ webshops, as well as via catalogues. These assortments are also available over the counter at hagebau stores and the Werkers Welt locations of the hagebau cooperation. With revenues of some 260 million euros in the past financial year, baumarkt direkt is a successful multichannel provider in the German DIY market.
Following the winding-up of the Joint Venture, the online shops hagebau.de, hagebau.at and werkerswelt.de will be managed by hagebau connect GmbH. The new company will henceforth bundle and further develop hagebau’s e-commerce retail activities and will be headquartered in Hamburg.
By taking over employees from baumarkt direkt the Otto Group will continue to expand the DIY assortment on otto.de.
Pending the legally required examination and formal approval by the antitrust authorities the Joint Venture will be dissolved on 30.06.2019.
Otto Group Contact Partner
Tel: +49 (0)40 6461 4010
Fax: +49 (0)40 6461 4490
Hagebau Contact Partner
Dr Ralph Esper
Tel: +49 5191 802 766
Fax: +49 5191 98664 766
Mobile: +49 172 453 8678
Established in 1964, today hagebau Handelsgesellschaft für Baustoffe mbH & Co. KG is a cooperation of around 370 legally independent medium-sized specialist trade and retail companies. The hagebau Group comprises over 1,750 locations across Europe, in Germany, Austria, Switzerland, Luxembourg, France, Belgium, Spain and the Netherlands. With centralised revenues (all goods and services purchased via the hagebau Central Procurement organisation) of 6,51 billion euros in 2017, the hagebau Group has a leading position in the sector. hagebau’s specialised retail business provides its (primarily B2B) customers with non-exclusive supplies in the building materials, tiling and timber segments. The hagebau retail business is the franchiser for shareholders of the hagebau Group. The hagebau cooperation is active in the local over-the-counter B2C market through its hagebaumarkt, FLORALAND and WERKERS WELT brands. The hagebau stores in Germany and Austria generated cumulated net sales revenue of 2.21 billion euros in the 2017 financial year. Through baumarkt direkt, a Joint Venture between hagebau and the Otto Group, Hamburg, the group of associated companies also covers the B2C online retail segment. With its more than 1,350 employees the hagebau Group provides numerous services for the associated medium-sized trading companies at seven locations. The cooperation is headquartered in Soltau, where it employs some 900 staff. The corporate divisions serving its medium-sized business shareholders include Purchasing, Sales and Distribution, Systems, Logistics, IT, Marketing and Financial Consulting, thereby providing comprehensive, cost-optimised support for its independent, medium-sized trading partners in their day-to-day business operations.
Founded in Germany in 1949, today the Otto Group is a globally active retail and services group with around 51,800 employees. The Group comprises 123 major companies and does business in over 30 countries in Europe, North and South America, and Asia. Its business activities are grouped into three segments: Multichannel Retail, Financial Services, and Service. In the 2017/18 financial year (to 28 February) the Otto Group generated revenues of 13.7 billion euros. With online revenues of approximately 7.9 billion euros, the Otto Group is one of the world’s largest online retailers. E-commerce, catalogue sales and over-the-counter (OTC) retail form the three pillars of the Otto Group’s Multichannel Retail activities. Worldwide corporate activities, numerous strategic partnerships and joint ventures provide the Otto Group with excellent opportunities to transfer know-how and leverage areas of synergy potential. Group companies operate largely independently, guaranteeing flexibility, customer proximity and optimum target-group appeal in their respective national markets.