The Austrian Retailer

Mareike Kerschbaum, Richard Dobisek, Lisa Sattler

Company history

1962 Foundation of Hofer by Helmut Hofer1968 Acquisition of Hofer by ALDI1980 Broadening of the range of

promotional items2001 Special offers 2 times a week2002 Launch of organic brand “Natur aktiv”

Company history

2003 Hofer as a travel operator2005 Market entry in Slovenia and

Switzerland2005 Hofer as a mobile phone discounter 2006 New organic brand

“Zurück zum Ursprung” 2007 Market entry in Hungary and Greece

Market Share Retailers in Austria 2006

Number of Retail stores 2006

Company philosophy„Focus on the basics“

Selective range of products High quality standards Constantly low prices Highest utility for customers Elaborated and uniform selling concept Competent management Store brands vs. brand-named products

Lineight by Hofer

Expanding in services Travel industry E-tailing – Photoservice Insurance services Electronics and mobile (cell) retailing Petrol station services Hofer Lineight BSCI

SWOT - Strengths Low-cost pricing Simplified store structure and organization

– “Inventory Stores” Market leader among discount retailers

SWOT - Weaknesses Lack of known brands Products offered just in large quantities Small product range variety Weak promotion-mix

SWOT - Opportunities Rapid growth of discount retailing segment in

Austria Shifts in target markets – Crisis Change of consumer behavior

SWOT - Threats Tough competition Discretionary income decrease can reduce

sales

Sources www.hofer.at www.hoferreisen.at www.aldi.de www.aldi.com http://www.lebensmittelnet.at/article/articlevie

w/63872/1/24306 http://www.oe24.at/

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